The proper response is for the university to state it, as an institution, is consecrated to Christ so not only will Christian symbols not be removed, no part of its facilities will be used to accommodate other religions at all.
Furthermore, you can't convince me that this was not precisely the motivation of Muslims even attending a Catholic university. This is part of their cultural jihad, to walk into our homes that we foolishly opened up to them out of some misguided notions of "fairness", "diversity", blah blah blah, and plant their flag of conquest.
The sheer unmitigated audacity of this entire theopolitical cult is breathtaking. If this university caves in, the Catholic Church should sever its relationship and give it the equivalent of an institutional excommunication.