It happened at Mount Saint Mary College in Newburgh.
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Authorities say all rooms in Sakac Hall are being checked as a precaution for mold.
The students have been relocated to off-campus housing, including hotels in the towns of Newburgh and Fishkill.
"We needed to take things for at least two weeks with us," student Christina Mistretta said. "That included clothing and toiletries, and all your school supplies that you would need during that time."
It was staff and students who noticed the mold soon after the kids arrived on campus in late August. Workers did a quick clean-up, but the problem resurfaced.
That's when administrators moved the kids out to allow for some thorough testing and remediation.
"Because it was so hot and humid this summer, there was excessive moisture behind the wall," said Jim Raimo, Vice President of Auxiliary Services. "So in many cases, it was in the fan coil unit or in the wall behind it."
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Some students told Eyewitness News they - and not the school - notified their parents about the mold problem.
There is transportation for students now living off-campus. Freshman Amanda Bosque relocated to a hotel in Fishkill, and she says getting to classes is a hassle.
"Now I have my mom's car, so she has to take the train to work," Bosque said. "So big impact, especially on the family as well."
There is no word on how long they'll be displaced.
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