Where is Babel University? I have no idea, but I’m pretty sure that the shirt is a novelty featuring a common student nickname for that august institution. It’s real name is Something Something City College (or maybe the Something Something City Colleges) and it’s a gritty, down to earth piece of educational infrastructure, churning out teachers and nurses and social workers and administrators to serve the real world needs of a large urban fantasy setting. While it certainly has its share of distinguished graduates, they tend to be crusading journalists and documentary filmmakers who tell truth to power, rather than ivory tower academics. People who love the place call it Babel University because of the many languages spoken there and the widely diversity of its student body, who come from (shall we say) a variety of different places of origin and walks of life.
Of course, since many of the students are adults who need to support themselves and their families, Babel offers classes more or less around the clock. The evening and late evening classes are popular with working students– and those who are nocturnal.
(The smaller character is either a toy mascot or a fellow student. Or both.)