According to the web site for SWOSU, this story is completly false. Southwestern Oklahoma State University has not banned the use of the word Christmas.
It sounded like a pretty backhanded denial to me. Sounds more like they admitted it had happened, but that their intent was “misinterpreted,” and they were only talking about “official” expressions of Christmas.
No, it is not "completely false". That is what the college first tried to claim. But then the Liberty Counsel started naming specific people involved.
The college released a second statement which did acknowledge that things were said which lead some people to believe that Christmas was in fact banned.
The university does not have a policy that bans the word ‘Christmas’ or Christmas decorations. However, some supervisors or department leaders within the university who meant well may have suggested to employees that caution should be taken with respect to Christmas decorations. One thing led to another and the result was that some mistakenly assumed that Christmas decorations were being prohibited.