As the title says, school is out, everyone has graduatiled 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.
Degrassi: School's Out! has the following examples:
- 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.
- 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.
- 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.
- 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.
- 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 "fucking Tessa Campanelli". Caitlin also has one when she confronts him about this, calls him a bastard when he admits the truth and breaks up with him.
- Wedding Day: 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.