As the title says, school is out, everyone has graduated and are preparing for everything from college to marriage. Joey and Caitlin continue their relationship as they prepare to go off to school. While she is working hard at her job to save money and mulling over taking their relationship to the next level, he decides to carry on with Tessa Campanelli who is willing to give him what he wants, to eventual dire consequences. Meanwhile, as Snake attempts to find some good fortune during this time in spite of his string of bad luck, Wheels is in the throes of his alcohol addiction.
It was Darker and Edgier than the TV series that preceded it, with Downer Endings for nearly everyone, fanservice in regards to Tessa, swearing, Wheels getting incarcerated, and Joey Jeremiah becoming a jerkass. With all of this being said, some other prominent characters of the show also appear but in diminished roles such as Spike and Yick; some characters such as Dwayne and Melanie don't even appear at all. The movie was followed by Degrassi Talks before the franchise went on a nine-year hiatus.
Degrassi: School's Out! has the following examples:
- A Day in the Limelight: For Tessa. After minor appearances from DJH season 3 onwards, she finally gets her own A-plot...in a Darker and Edgier FILM adaptation.
- Darker and Edgier: None of the television series that came before it were exactly lighthearted fluff to begin with, but the film was considerably much more serious (and perhaps a little BIT too serious) with very minute amounts of humor.
- Downer Ending: Hoo boy. The film has this for nearly everyone: Joey and Caitlin break up after he's forced to admit to cheating on her with Tessa, Tessa herself gets pregnant, has an abortion and while she keeps this from him, tells him how she hates him and ruined her life, Wheels drives drunk and both kills a child and critically injures Lucy, who ends up blinded and unable to walk and unable to honor her scholarship to college and Snake ends up finding a girl (who he saves from drowning), but now has a strained relationship with Joey and cuts off ties with Wheels.
- Drunk Driver: Wheels, which is ironic considering his parents were killed by one.
- Everyone Has Standards: Snake, aside from being the Only Sane Man among his friendships with Joey and Wheels, is so angry over both of his friends actions and otherwise crappy treatment of him and others, that he rats out the former and severs ties with the latter.
- Girlfriend in Canada: Well, they're all in Canada, but Wheels seemingly has a real one: "Karen", who took his virginity and who he's moving to Alberta to be with after the summer. What happens to her after he goes to prison is never explained.
- Good Girls Avoid Abortion: Averted with Tessa, who soon aborts her pregnancy by Joey and never tells him about it.
- Laser-Guided Karma: Joey and Tessa due to their actions: the latter ends up pregnant by him, aborts it and now had her life ruined while the former loses his girlfriend once she learns of his cheating and without his two best friends, one of whom is in jail and the other is likely to end their friendship.
- Locked Out of the Loop: Tessa and her friend are the only ones who know about her pregnancy and subsequent abortion. As far as we know, Joey never learned of this, even during his time on The Next Generation.
- Never My Fault: Wheels has already been pulling this off by blaming everything he's done on his parents being killed by a drunk driver. In a case of bitter irony, he ends up being one himself and injures Lucy and kills a small boy. Unfortunately, as he's being visited by Joey, he still refuses to take responsibility for his actions, saying "It's not my fault that that kid wasn't wearing a seatbelt, or that Lucy wanted chips!" This disgusts Snake so much that he breaks off his friendship with him.
- Nothing Is the Same Anymore: By the end of the film, everyone's lives have changed primarily for the worst.
- It'd be easy to list those who come out on top by the end of the film: Alexa & Simon (married), Spike (going to university), Tim and Yick (groomsmen for Alexa and Simon), Erica and Heather...
- Oh, Crap!: Snake has this reaction upon realizing that Lucy has gotten a ride with Wheels to buy more snacks even as he was liberally drinking. Sure enough, the next scene is of him under arrest for severely injuring her and killing a three-year-old boy.
- Plot Hole: At the end, Spike tells Caitlin she is going to university. In The Next Generation, she tells Manny that everyone else went to university while she stayed home as a result of being a mother. Though this could probably explained as Spike may have planned to, but her schedule with Emma proved to not make it work.
- Precision F-Strike: Snake has one when he blurts out about how Joey, who was mocking him about his lackluster love life, had spent his whole summer "dating Caitlin and fucking Tessa". Caitlin also has one when she confronts him about this, calls him a bastard when he admits the truth and breaks up with him.
- Sarcastic Confession: Snake does this to Joey in front of Caitlin due to his relentlessly bullying of him over his "sad" love life by calling out what a "stud" he is to string along two different girls.
- Smoky Voice: For some non-smoking related reason, Spike has one during her scenes working as a film processor. This is never explained and magically goes away by the end.
- Wedding Finale: The film ends with several characters attending the wedding of Simon and Alexa. Ten years later at their class reunion, they are still Happily Married and expecting their third child.