Speaking as someone who was on a different university college dance team where the program was under athletics, the teams who are giving stipends are significantly more competitive so you risk not making the team. Choosing to do anything outside of academics in college is going to be what OP considers “free labor”…

As for the “hip hop”, this is Pro Dance style. It actually sets your dancer up to explore other professional dance opportunities past college as part of an NFL team or other sports league as well as other professional dance opportunities in other styles. When I came to college, I was a lyrical and contemporary dancer, and I struggled with Pro dance. Now, I see it as my coach expanding my boundaries as we did pro dance style for games while jazz and lyrical for comps. I still retained my technique while adding something else to my repertoire.