Two thoughts:
The first is religious institutions seem hellbent on making this part of the "Culture war", seeing as basically no theological justifications seem to be had for what bathroom transpeople use or if their housing is on campus or not. Are these places religious institutions or cultural ones?
The second, is that if I were the student I wouldn't want to go to that school anyway, I would do whatever I could to appeal the decision for posterity's sake but, really if they don't want me, they aren't getting my tuition money.