That's pretty strict :/ We have a similar system in croatia, you have to pass certain exams to pas the year, and I think you can fail a year 2 or 3 times. after that, if you don't pass that exam, you lose the right to study at universities (which I believe expires after 5 years but it's still a lot of time). I don't know much about it because I study in Italy, and there you can do whatever you want for as long as you want to, as long as your payments are regular. But try appealing, it can't hurt.