What exactly are you opposed to?

Illegally re-distributing fonts? (It seems if outlining your type is OK, that’s not a problem.) Submitting your portfolio on CD instead of on paper? Or doing it at all?

Do you think your school wil steal or sell your work or something?
If so, I would ask myself what I’m doing at that place to start with. :)

I imagine they want to look at the files to asses the design but also your technical skills. Apart from the font question I don’t think you have grounds for objection.

What would be risky or unethical about making PDFs of everything, all fonts converted to outlines (vectors)? Then the work can’t be opened or used and there are no fonts present.

What exactly do you mean by ’portfolio files’? Do you mean board layouts? or copies of every project you’re showing in your portfolio?

Our teacher asked us to give our portfolio files and give it to them. They even dare enough to ask to put the fonts that we used to the cd.

If you look at the student handbook, you will likely find something about you owning the work, but the school having unrestricted rights to reproduce the work for promotional purposes. Getting original files from students is how schools get the materials for reprinting. Chances are that there is nothing you can do about this that won’t allow the school to toss you out right before graduation.