Even if it is funded by a government program, they can do it.

For the 4,213th time, homosexuals arent a federally protected group. None of the 50 states offer them civil right protections and only a handful of cities around the country offer protections. Translated that means in the vast majority of the US, upon discovery that someone identifies as a homosexual (gay or lesbian) they can LEGALLY be fired, evected from rental property, denied admission to a university, be denied a bank loan or credit, denied service at a restauraunt, denied visitation in hospitals, excluded from services and programs offered by the government, have children in their custody removed, or denied other things that the rest of us take for granted as a right.

Most people are really suprised to find out that civil rights protections dont extend to gays. That yes, in 2004 LEGAL, government-sanctioned descrimination DOES still exist.

As MLK said, "An injustice anywhere is a threat to justice everywhere."

Private colleges can make any kind of decisions that they want about taking away someone's scholarship or kicking them out of school. Does anyone remember a few years ago when a girl on the Real World (don't remember which season) went to BYU, took a semester off to do the show, and afterwards, the school didn't want her to come back because she had to sign a paper saying that she wasn't going to cohabitate with the opposite sex before she could actually even come to this school.