So, if a private school shouldn't/can't discriminate on the basis of race, should they be able to discriminate on the basis of religious affiliation/belief? I

So, if a private school shouldn't/can't discriminate on the basis of race, should they be able to discriminate on the basis of religious affiliation/belief? I ask this as a graduate of a Christian liberal arts college, which discriminates on the basis of religious beliefs. It's not entirely on topic but I think the "logic" still applies. Or does it?