It isn't only gay students who suffer from anti-gay bullying. The term gay and its synonyms, irrespective of sexual orientation, are now universal terms of abuse in school parlance. The impact of their usage, however, can be minimised significantly with some judicious intervention. Try asking what is understood by the term next time you hear the name-calling within your earshot.
Fragile egos will thank you. And some narrow horizons may just be widened sufficiently to the benefit of all concerned.