No, they don't represent foetuses, of course. They represent souls. And if you actually read the end, the other students said they wouldn't be getting any more chances. Looks like they all knew what was going on, too. Of course the 'innocent' and 'naive' main character was left out of the loop. And ended up having to compromise more than anyone else, once again. Just like all of this author's female and/or uke=ish characters. SO freaking annoying and f*cking depressing.
So, if those students represents fetuses waiting to be born, then what happens to those that don't want to "graduate" and keep attending the class diligently? Chilling at mom's womb for a year or two? ╮( ̄▽ ̄)╭