It's a private school, they can do what they wish in this instance. Right or wrong.

True, but the reason they are able to discriminate is that they are not being labeled a private school, but a religious institution.

A private school is a business and much like a business they have to operate within the law.

If a women's clothing place refused to sell to transvestites they could face charges and/or be successfully sued.

A company can't refuse to serve a customer based solely on certain protected traits. A realtor can't refuse to sell a home to african-americans or even refuse to show them property that is in an all white neighborhood.

A company can't refuse to have lesbians as their customers.

However a church isn't labeled a business even though they make a vast amount of money. The church operating the school simply waves the magic wand of "religion" and they are exempt from having to obey all those pesky laws that you and I not only are required to follow, but gladly follow.

Religious institutions can be as bigoted as they want.

Well, most (not all) private schools are religious.

Personally, I have no problem with this. Religious schools have standards and by-laws that are well known. These girls broke them. Period.

I don't have a problem with it either. They should be able to operate as they please. They should be able to operate as their customers wish.

Even if the school does have a right to expell students for being homosexual, it hasn't actually demonstrated that these two girls were in a lesbian relationship. The girls haven't admitted anything, and have only stated that they love each other as friends.