RFID is really no different from a security card. In fact, most security cards these days USE rfid. And no, it can't read your heartbeat. It can transmit your medical stats if you have SOME OTHER electronics implanted in you which is connected to an RFID transmitter.
The problem with this story is there's no information on WHY the judge made the ruling, or even what the ruling actually was. Based on what I see here, it could be that the university wants students to carry ID badges or ID cards when on campus, and it might be to track their use of resources or it might be to only let authorized people into the pool. Or it might admittedly be for some truly moronic reason.