My University paper did something like this. They were looking for someone to do some website design and maintenance for them at $300 a semester, and I offered to help. Not because eleven dollars a week rewards the effort I would put in, but because I felt like helping my University fix their embarrassing web presence.
In the end, despite the fact that I had worked with them before, and came recommended by the CS department, they demanded a full resume and a burned CD with examples of previous work before they would even talk to me! They ended up with an English major who "had experience with Dreamweaver", and clearly didn't mind jumping through hoops for negligible reward :P
It seems most senior staff for college papers (the journalism majors) think that they can very easily apply their expertise and authority of print journalism (most of what's being taught in journo programs) to the web. It doesn't work and creates insulting instances like your story.
In the end, despite the fact that I had worked with them before, and came recommended by the CS department, they demanded a full resume and a burned CD with examples of previous work before they would even talk to me! They ended up with an English major who "had experience with Dreamweaver", and clearly didn't mind jumping through hoops for negligible reward :P