I think this is more about meaning. They are both okay, but the first sentence is more vague. I assume it means to limit students generally, but I'm not sure in what ways exactly. (Does the university limit students' abilities? students' future opportunities? students' freedom of speech? students' creativity? students' meal choices??) The second sentence specifically talks about the students' freedoms. So it depends what you are talking about. I would probably pick the second sentence because it's more specific, but the first sentence is not wrong (with the exception of that typo in "ridiculous"). ;)