After learning about Phil's past relationship with a student, Christina decides they can have no future together and Phil makes the decision to resign. Jodie rallies her fellow students to save the school's music programme. Nick's father invites Jodie to stay at the Poulos home while her rowdy sister is in town.

While serving as acting principal, Southgate institutes a series of strict policy changes as a means of preventing the possible closing of the school. Steve learns of Nick and Danielle's blossoming relationship while on a school trip and lands in hospital after a scuffle with Nick.

Rose's pregnancy complicates Hartley's plans to host the prestigious Education Awards. Con confronts his father when he lends Rocco money to help get the Shark Pool up and running rather than paying for the audio engineering programme Con is interested in.

A decline in enrolment applications threatens to permanently close the doors of Hartley High unless the additional students can be found. Deloraine suffers has a mild heart attack and is admitted to hospital. Meanwhile, Sam turns down Andrew's proposal and soon finds herself back with Peter and the two run away together. The kids launch a campaign to save school and just when it appears they have failed, Jodie returns and delivers a passionate speech that pushes the campaign over the top.