Of course RMS understood the overtone perfectly, but Vrije Universiteit (vu.nl) is the real name of the university. Its name can be translated to "liberated university". As I understand it, it's a free university in the sense that historically, students of all religions were eligible to attend, as opposed to e.g. Katholieke Universiteit which was Catholic.
https://en.wikipedia.org/wiki/Vrije_Universiteit_Amsterdam