Whether or not it hurts the students is up to the administration. Professors can grade their own exams, as they do in many courses already. The university doesn't even have to dip into their own pockets, they can use federally subsidized work study labor if they were short on labor.

However, by hurting students and adhering to draconian policies that serve to hurt more students, the school is paradoxically increasing support because the administration knows students are going to be enraged without looking into the nuance of why these things are happening to them, and who decides why these things should happen the way that they do.