University admissions are not just an issue of personal merit. It isn't something that you're owed because you did X, Y and Z. Colleges are trying to build a positive culture, just like startups, and that can involve rejecting skilled people with fringe beliefs.
Not to mention, who wants to pay $30,000/yr and have their kid be roommates with a holocaust denier?
People can believe whatever they want. They just can't work and go to school wherever they want