A questionable assertion. You should acknowledge that it is a sin. You should repent. You should not actively live that lifestyle.
I'd say these people fail all tests and if they walk out, hopefully they will never come back. The schools will be the better for it.
When they say “You can be queer”, they are implying rather forcefully through the words chosen to be actively participating in the queer lifestyle. No, you cannot be “queer” and be a believing Christian as you have an attachment to a serious sin.
If Milo Y could repent and give up that sin...anybody can.