I haven't had anyone flunk out of University yet, but I did have one flunk a class. It was an elective that should have been very easy for him to pass, too, since he already had high skill in that category.
Unfortunately, he was taking three classes and on the soccer team, so he never seemed to have enough time for all his homework and the two term papers he had that term.
When he emailed the professor about he progress, the professor said he was doing okay, well enough to pass, at least. But then he was late to the final, and I got a message that the term paper I had barely finished the night before and *thought* he turned in... hadn't been, I guess. Maybe something glitched, I don't know. It was very frustrating.
This term, he's only doing 2 core classes and the soccer team, and his work is much easier to get done. The soccer team every single evening doesn't leave much time to socialize and do a lot of fun stuff, though...