It sounds like you have been struggling with the schedule, but the fact of the matter is you had another chance and they dismissed you anyway. Is it documented what the outcome was in the last meeting when they gave you that warning? I hope so, and I would use that when contesting the decision. I would be wary of using the race card when contesting it, I would question if there was some kind of misunderstanding, and "in the letter after our meeting on __/___/_____ I was given the following terms, 'quoted text'".
Also with this summer break, I would start contacting other schools and asking their recruiter/advisor about transferring. It's going to really vary by state and school systems. IE was it a private college versus a state, if state is it the same state, etc.