I'll be following this thread with great interest, as I spend more time than I'd care to in Louisville(fortunately the state supreme court did say this past spring that I can at least be armed in my car at U of L, my primary destination there).
If you can and don't mind to, would you share where in town this incident took place?
You can be armed at all times while on the campus. It is NOT illegal to carry your firearm on post-secondary school property, but KRS 237.115 gives post-secondary institutions the authority to "control" the possession of weapons on property they control. This means if they decide to ban firearms on campus, that it is not a criminal act to disregard that ban. If you are found to be in possession of a firearm the school can sanction you or terminate your enrollment. If you have a CDWL and carry concealed it should not be of concern (concealed means concealed in this situation).
I also understand that one cannot obtain a CDWL until they are 21 in Kentucky, so it makes it hard to keep a firearm on your person while at school (can't hide a firearm in plain sight). If you can get a non-resident permit from another state that issues to anyone over the age of 18 (maybe Utah or Florida?) then you could carry concealed in Kentucky on that permit/license. You can carry concealed in Kentucky at 18, but you can't get a Kentucky CDWL until you reach 21.
I carry in an IWB Comp-Tac Minatour with a Glock 23; any IWB with a loose fitting shirt does an outstanding job of concealing most handguns.