The image of the clergyman has been taken down from the 'wall of fame' at King's College London's building on The Strand after a five year campaign.
King's College London said the former archbishop's opinions on gay marriage "did not capture the diversity of our university campus".
The campaign to have his image removed started five years ago after Lord Carey endorsed the traditional Biblical view that marriage is between one man and one woman.
At the time student Ben Hunt, who is now president of the student union, promised to have it removed if he was elected as LGBT officer.
"His name has been tarnished by a 'Gaystapo' that refuses to acknowledge that a clergyman cares for all, while maintaining a traditional view of marriage," said Dr Niall McCrae and Rev Dr Jules Gomes.
In a blog post for the Conservative Woman website the pair claim the image of Lord Carey was "repeatedly defaced by graffiti".
"To label Carey a homophobe is to enter the theatre of the absurd," the blog adds.
"The Established Church does not restrict membership or ministration of sacraments to a holy huddle of Hallelujah criers who sign a confessional statement.
"By law, an Anglican cleric is required to minister to every soul within the parish. He or she does not choose who enters the sanctuary, but must hatch, match and dispatch all and sundry - extending to an avowed atheist (or a gay Christianity-basher).
"Indeed, it is commendable that clergy do this with great compassion, albeit sometimes torn between their own convictions and the imposed whims of modernisers."
KCL told Premier that Lord Carey was notified in advance and expressed himself as "fully supportive".
