The kids are back to school in a new building. Erica had her first ""serious"" boyfriend, and think she may be pregnant after a night of unsafe sex with her Jason. Spike's daughter, Emma goes to daycare in the same building as Degrassi high. The Degrassi gang are both fearful of initiation, and they do not know what to expect out of the older bullys like Dwayne, Tabi, and Nick. Joey and Caitlin are still going out but his priorities are the promotion of his band, The Zit Remedy, (which this season will have a new name called The Zits)

Erica decides to keep the pregnancy a secret (the only person she tells is her twin sister, Heather). She also decides to have an abortion. Heather, disapproves of this, but accompanies her to the abortion clinic anyways.Also Alexa dislikes her boyfriends(Simon) new modeling job.

Everyone wants Caitlin.Arthur keeps fantasizing about her, but his dreams keep getting interrupted before he can even kiss her.Haha.Joey has a date with her on Friday, but she cancels. Caitlin instead goes out with Claude on Friday to see some French film.Caitlin must be crazy. Joey is so much more cuter and funnier and better than Claude could ever be.While auditioning for the school play Kathleen gets intrested in someone, a junior named Scott.

Lucy finally agrees to shoot The Zits' video - if they can all agree on a script, persuade Clutch to lend them his car, coax Lucy into shooting it with Clutch around… Life is almost perfect for Joey - he'll deal with the small problem of Caitlin just as soon as the video's done. The hate campaign against Erica escalates, and Erica is determined to find out who is putting pamphlets and slogans on her locker.

Michelle finds her father impossible to live with, but now that she's sixteen she can legally move out, if only she had the money. Of course, there is that family ring she got for her birthday. Spike is nervous about how fond Patrick is becoming of her - she just doesn't want to get hurt. Joey and Snake are excited about starting driving lessons.

Michelle finds her father impossible to live with, but now that she's sixteen she can legally move out, if only she had the money. Of course, there is that family ring she got for her birthday. Spike is nervous about how fond Patrick is becoming of her - she just doesn't want to get hurt. Joey and Snake are excited about starting driving lessons.

When Erica starts seeing a new boy, it frightens Heather. One abortion was bad enough, but what if she goes too far again? Heather has to come to terms with her own guilt at having supported Erica. Alison says she's giving up on her campaign to win Snake, but when he invites Alison's best friend Amy to the dance, the claws come out. Scooter suddenly notices that his pal Tessa is (gasp!) a girl!

Lucy becomes director and writer of her first film: a feminist horror flick starring the Zits, Simon and Caitlin, with Alexa, Tim and Heather as crew. But the film that's playing in Lucy's mind is a far cry from the one that's unfolding in the empty Saturday morning corridors of the school. Spike is nervous when Shane starts hanging around the school watching her.

Caitlin hears that Ms. Avery has been fired from her job in the school resource centre. When she starts a petition around school, protesting her firing, Mr. Raditch intervenes. He tells Caitlin she was offered a job as a substitute teacher, but turned it down. Caitlin confronts Ms. Avery about this. Ms. Avery explains she wants a classroom of her own with students of her own. They get into an arguement, but later reconcile at Ms. Avery's going away party.

Also Michelle takes too many caffine pills and BLT takes her to the school nurse.

Condom machines have been installed in the school washrooms, and as Lucy records reactions with her video camera, Dwayne finds an interesting new use for the condoms -as water bombs to drop on Joey, Wheels and Snake. Joey, however, is more concerned with raising money to put a down payment on a muscle car, and takes bets that he will walk through the cafeteria - wearing nothing but a hat. B.L.T. has trouble breaking up with Michelle. Dwayne receives a frightening phone call from his summer girlfriend. To be continued...

Joey and Dwayne's enmity has escalated since Joey found out that it was Dwayne who turned him in for walking naked in the cafeteria, and Joey is determined to get Dwayne back. AIDS speakers at Degrassi during Sexual Awareness Week make the illness chillingly personal - especially for Dwayne, who becomes increasingly withdrawn as he awaits the results of his HIV test. Michelle finds out the real reason B.L.T. broke up with her.

Wheels' lies to his grandmother become more elaborate as each tops the one before, and when he's grounded for his marks, Wheels concocts another story so he can go to a concert with Joey and Snake. Caitlin becomes increasingly upset about her father's infidelity, but discovers that her mother already knows about it. Yankou doesn't know what to do about his crush on Tessa.

When Tim tries to kiss Liz good night after a date, it reawakens her long-ago memories of sexual abuse, but it's just not something she can talk about, not even to her best friend Spike. Yankou thinks he wants to kiss Tessa, but he's not sure whether she wants him to. Joey feels pressured with Wheels living in his house. Dwayne's friends can't understand what's bothering him - and Joey's the only one who knows.

When Lucy, Heather and Erica hear the rumour that their favourite band, The Savages, is making a rock video at the school, nothing will stop them from sneaking in to see them - not even the fact that Lucy's boyfriend Bronco could get into trouble. Joey and Snake's campaign plans are abruptly changed when they also discover the band is at Degrassi. Caitlin's parents ask her to come home so they can talk.

Auditions are being held for Talent Night, and the acts range from dramatic poetry to singing hats. Joey is struggling with science - it's clear he's going to need some help. Alexa is thinking of breaking up with Simon. But the whole school is thrown into turmoil when a student commits suicide at school - especially Caitlin, since the student is her ex-boyfriend, Claude. To be continued...

Life begins to go on at Degrassi, but should they go through with Talent Night? Snake is beginning to feel better after his discovery of Claude's body. Joey still desperately needs help with science, and Mr. Webster has set him up with a tutor - Caitlin. Joey's apprehensive enough, what with his history with her, but when he gets to her house, he finds that she's still suffering the effects of Claude's suicide.

Dwayne must deal with his feelings about being HIV-positive and with the reactions of other students once his secret gets out. Lucy is keen to follow the footsteps of boyfriend Bronco into the school presidency. Joey contemplates asking Caitlin to the semi-formal. Suddenly the year's last dance takes on new significance when the news comes out. It's not just the year's last dance. It's Degrassi's last dance.