Ah. Okay. This makes a lot more sense now.
Let me shed some light if I may.
There's been a lot of talk about different denominations of Christianity in this thread. Specifically from Catholic to Christian. This school was Lutheran, which I am as well. Which begged me to ask the question...which synod? There are two major synods under the Lutheran faith here in America. First you have the ELCA, which is the Evangelical Lutheran Church of America. The ELCA happens to be what my church is. The ELCA takes a fairly politically correct stance on everything. Which, to be honest, drives me crazy. You're a Church, you're allowed to say that something doesn't follow your belief system. Take abortion for example: It's wrong except in cases of rape and incest. Can you get more politically correct than that? My theory on Churches is that they can and should take a stand on issues but then be open to their members who might not follow it. (i.e. We believe homosexuality is a sin, but Jesus has forgiven all of our sins, so we welcome you as a brother or sister in Christ...not necessarily my belief, just saying that I think that's the kind of stance any Church should take...we might believe it's a sin, but everyone sins, so you're still welcome in our Church)
So...back on topic... The ELCA is very politically correct, I don't know what their official stance is on homosexuality, but I doubt very much they would kick someone out of their school because of their sexual orientation.
The Missouri Synod is the second major synod of the Lutheran Church in America. They are much more "conservative" in their beliefs. They take firm stances on everything, though because I've never been a member of a MS church, I don't know if they would welcome people who go against those beliefs or not. When I asked, I assumed it would come back that this school associated with the MS, but I'm even less surprised that it is the synod that it is, and I'll get to that in a minute. To give you an idea, the Missouri Synod still does not allow women as pastors or leaders in the Church. So homosexuality I'm sure they frown upon.
Now, this school is the third most prominent, but not nearly that large (especially here on the East Coast.) It's the Wisconsin Evangelical Lutheran Synod or WELS. This synod is even more "conservative" than the Missouri synod. So therefore, I am not surprised in the least that they would kick someone out based on their sexual orientation. (I'm not saying I agree, just saying I'm not surprised.)
I wanted to clear this up because while all Lutheran Churches believe basically the same thing, you are saved by your belief in Jesus and it is by grace and not works that you are saved... The differences between these synods are very striking. For example, I will not attend a MS or WELS Church because I'm very against not having women in leadership roles. I want everyone to understand that just because someone is Lutheran, that does not mean that they "hate gays" or are part of the "Christian Taliban" (I have more problems with that term, I mean seriously...)
Also, this is a private institution, we have a separation between church and state in this country. This school is well within their rights to do this, whether we like it or not.