But the school was opened in 1960. "In the 1940's" could be anywhere from 1940 to 1949. The school must have started construction before it opened.
That means less than 20, and as little as 10 years between the time it was a cemetery and when the area was planned to be a schoolyard.
I can still see the school being built and no evidence of the graves ever being revealed. Especially if there were no headstones. Grass grown over the grave sites.
I live in rural Florida now and I have seen things disappear over ten years on my own farm that the sandy soil just "absorbed" over time.
It's still not a stretch to see how this could have happened.