No they shouldn't be able to do that
Yes they should be able to do that
Don't be naive; this isn't and never was a free country.
Discrimination based on something uncontrollable is illegal in the United States. Schools already discriminate based on things like GPA and work ethic.
Being a private school doesn't exclude them from anti-discrimination laws.
If it's private then it's a business and should be subject to equality and diversity legislation.
Its ridiculous to want to teach discrimination in a world which does not tolerate (or should not) discrimination.
If it's a private school then the government can't say who it can and cannot accept.
I'm not racist, but it is a privately owned school. They have the right to their own opinions like you and I.
A private school can set the bar -- for admission, academics, etc. It is usually higher than the Public schools (no offense intended). Often times, the grading-system is also tougher. They do not receive government funding & the government cannot interfere with that.