Setting a standard isn't crushing anyone's dreams; it means WORK HARDER. I had a kid who ran a 6:30 mile his freshman year, worked his tail off and ended up going D2. Anything is possible.
Here is UConn's recruiting standards. 4:14 if you want a scholarship.
The low-majors I looked at (5 different schools) had 4:20, 4:22, 4:17, 4:20 and 4:20.
Keep in mind a "scholarship" standard is not a FULL scholarship standard. To get a full scholarship as a distance runner, you need to do XC as well or be really fricken good and basically a guaranteed point scorer in the conference. I had a kid run a 4:13-4:15 mile consistently who got a partial scholarship to a low-major. Multi-event sprinters and athletes who can score in multiple field events are the ones who get the good money.