There is of course a replace() function in java that lets you do this without a while loop. If you want to do it letter by letter, it gets a little complicated because you have to take care not to index the string outside its bounds.
I did not bother to create a separate runner class. The Main is just inside this class and everything is static.
public class LetterRemover { 
 
 public static String RemoveLetters(String s, char c) 
 { 
 int loc = s.indexOf(c); 
 while(loc >= 0) 
 { 
 if (loc == 0) { 
 s = s.substring(1); 
 } else if (loc == s.length()-1) { 
 s = s.substring(0, loc); 
 } else { 
 s = s.substring(0, loc) + s.substring(loc+1); 
 } 
 loc = s.indexOf(c); 
 } 
 return s; 
 } 
 
 
 public static void Test(String s, char c) { 
 System.out.format("%s - letter to remove %c\\%s\\", s, c, RemoveLetters(s,c)); 
 } 
 
 public static void main(String[] args) { 
 Test("I am Sam I am", 'a'); 
 Test("ssssssssxssssesssssesss", 's'); 
 Test("qwertyqwertyqwerty", 'a'); 
 } 
}