[Lurking Libertarian]

The school is well within its rights as it is a private institution. It can accept and reject as it pleases. I just don't think they handled this well at all.

I agree with both thoughts.

[Scarlet Pimpernel]

Once the media was involved, there was NO WAY the school was going to handle this situation "WELL". There are just way too many Monday morning quarterbacks deciding just what the school should have done.
My two cents: The school tried to do the right thing. I doubt if anybody here could do better (and not be criticized for it).