I have 3 points to make:
1. I don't think educators should stoop to the level of misconduct their students display just to "feel more comfortable" with them. That teacher deserves his suspension but I don't necessarily think he needs to lose his job.
2. If you're not black, I don't think you have any business using "*****" even if it is a slang term. The only possible exception is a highly unlikely one, and that's if a black person tells a non-black person that it's all right to call them that. Otherwise, you can be their "*****" but they're not your's. Call them "dude", "bro", "buddy", or whatever affectionate term you like but just because you're called it doesn't give you license to use the term. The reverse is true as well, if you're not white, don't call white people derogatory terms as well. Same with anyone else, Asian, Latin, etc.
3. A lot of non-black people seem to have the hardest time understanding the concept of why it's ok for blacks to use it and for others, it's not. When it comes down to it, such things come down to cultural identity. Sure it may have been years since slavery and the civil rights movement but the past has shaped the present and will continue to do so.