Police are investigating the incident, which occurred a few miles off campus at a residential complex that houses mostly Ole Miss students.
"It's unclear at this time if the incident is related to the incident last Sunday on campus," Oxford Deputy Police Chief James Owens said. "This is pretty unusual. This is a college town. This doesn't usually happen here."
James Meredith became the first black student admitted to Ole Miss in 1962. And it took a Supreme Court ruling and federal police presence to ensure his admittance.
Meredith, 80, declined to speak about the noose incident. But his wife said she was not surprised that it happened.
"I'm shocked but not surprised by what happened," Judy Meredith said. "I'm surprised something didn't happen to the statue earlier."
Meredith's son, John, added, "Obviously there is a little bit of work left to do in terms of our social fabric.
"My father always has said it's not a matter of civil rights, it is a matter of citizenship."
Ironically, James Meredith has said he is no fan of the statue, that he disapproves of it on biblical grounds and believes it should be removed from campus.
"It's a false idol, and it's an insult not only to God, it's an insult to me," he said in an interview with The New York Times.
Fraternity to suspend Ole Miss chapter
On Friday, the Sigma Phi Epsilon Fraternity said it was "embarrassed" to learn the three suspects were members of its organization.
Not only would it expel the three students, the fraternity said, it was going to indefinitely suspend the whole Ole Miss chapter.
"For this to occur in 2014 is an insult to the legacy of James Meredith, The University of Mississippi community, and the SigEp alumni who fought for racial equality in the late 1950s," the fraternity said in a statement.
Students who spoke with CNN affiliate WMC shared similar sentiments:
"I just feel like whoever did that had to be completely ignorant to the impact that he had on this campus to deface school property and such a monumental statue like that," sophomore Raven Lyles said.
"I think it's absolutely terrible what they did," freshman John Choat said. "I think they should pay for it."
"To be honest, we haven't come as far as we think we've come," said another student, Bryston Tucker.
Tuohy: Isolated "stupidity" is to blame
A few well-known university alums weighed in on the furor. NFL star Michael Oher, who played for the Ole Miss Rebels and was made famous after his story inspired the movie "The Blind Side," took to Twitter on Monday to share his feelings.