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this post was submitted on 15 Sep 2023
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Fraternities are historical I think. At least here in Germany they are.
They pay the costs of going to college (in Germany it's already free, so they simply provide cheap housing) and provide connections to older students and graduates. In turn you are expected to stay as part of the community once you have a job and pay a membership fee that will be used to provide that cheap housing I mentioned.
It made sense back when "not immediately working" once you finished school was really expensive. Not only because of costs, but because of lost wages as well.
Now that the state takes care of this they are losing significance.
In the US fraternities and sororities are not usually financial assistance organizations as you're describing. The main focus is just as a social organization. A quick and easy way to get 50 friends to hang out with. They also do sometimes provide connections or help with studying.