The London School of Economics made the decision after the student paused their studies, despite being informed it would result in them becoming homeless.
The student, who doesn't want to be identified, paused their studies when the illness became so severe they were admitted to hospital.
The university gave the undergraduate one week to move out of the accommodation, according to student newspaper the Beaver.
The LSE's Student Union (LSESU) hit out at the university's decision.
"It’s time LSE recognised their duty of care towards current and interrupting students," LSESU Community and Welfare Officer Aysha Fekaiki said.
"This was a complete failing both institutionally and personally to the detriment of the student," she added.
This was a complete failing both institutionally and personally Aysha Fekaiki, LSE's community and welfare offier
Fekaiki said she had been trying to speak to LSE on behalf of the student, but with little success: "I had contacted seven different people within the school who all referred me to each other for an answer over the two week period.
"How can students be put through this when they are reaching out for support?”
LSE was informed that moving back home was not an option for the student, who couldn't afford the "full time care" the university suggested.
It's understood that two NHS professionals made separate recommendations that the student remain in university halls so they had a stable environment to live in.
Nonetheless, the student was evicted on 25 March.
Since the student was evicted, more than 800 people have signed a petition demanding they be allowed to return to student accommodation.
"There appears to be a culture within LSE of placing protocols and bureaucracy above the well-being of students," wrote petition supporter Tom Carmichael.
"If the school wants to resolve low student-satisfaction levels, this has to be the first step in re-establishing trust with the student body," he added.
A spokesperson for LSE told The Huffington Post UK: "LSE takes the safety and welfare of its students very seriously.
"We are not able to comment on the details of individual situations but we can advise that the School strived to provide the student in this case with high level support during their time."
Useful helplines and websites:
For confidential support and advice you can also contact the Papyrus charity's helpline on 0800 0684141
Samaritans offers a listening service which is open 24 hours a day, on 116 123(UK and ROI - this number is FREE to call and will not appear on your phone bill.)
Mind, open Monday to Friday, 9am-6pm on 0300 123 3393
Get Connected is a free advice service for people under 25. Call 0808 808 4994 or email: firstname.lastname@example.org
HopeLine runs a confidential advice helpline if you are a young person at risk of suicide or are worried about a young person at risk of suicide. Mon-Fri 10-5pm and 7pm-10pm. Weekends 2pm-5pm on 0800 068 41 41