verb (used without object)
to fail in a course or examination.
verb (used with object)
to fail to get a passing mark in: to flunk math.
to give a failing grade to; remove (a student) as unqualified from a school or course.
a failure, as in a course or examination.
Verb phrases
flunk out, to fail and be unable to continue in: He flunked out of flight school.

1815–25, Americanism; perhaps akin to flinch1, funk1

unflunked, adjective
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World English Dictionary
flunk (flʌŋk)
vb (foll by out)
1.  to fail or cause to fail to reach the required standard in (an examination, course, etc)
2.  to be dismissed from a school or college through failure in examinations
3.  a low grade below the pass standard
[C19: perhaps from flinch1 + funk1]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1823, Amer.Eng. college slang, original meaning "to back out, give up, fail," traditionally said to be an alteration of British university slang funk "to be frightened, shrink from" (see funk (1)). Related: Flunked; flunking.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
And if you flunk out, you might not get a second chance because there are age
  limits for admissions.
We flunk students all the time for not understanding the basic concepts in
  their field.
Unfortunately, the continent's rulers are likely to flunk it.
We have real grading and performance standards and enforce them, and flunk out
  a lot of students.
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