A slang term for alternative high schooling for those who have been kicked out of normal high school or those who are over 21 and are no longer allowed to attend normal high school and want to finish. The coconut part comes from slang term coconut which means idiot, dumb person, etc and the college part because it's taken later in life. The term became wide spread in the 70's.
Dude 1: Hey man, are you up for going out tonight?
Dude 2: Sorry man, I gotta report into coconut college with independent studies