It's HSC results day and the gang await their arrival with trepidation and excitement. Matt, confident, makes plans for his and Stassy's future together. But Stassy fails and her father turns up to ensure she abide by the family agreement and move back home. For Stassy this is the end of her life as she knows it. Katerina, intent on going to business college suddenly changes course and puts all effort into a dancing career. She becomes annoyed with the depressed Charlie when he decides to go back to school to get a better score. When Declan confronts Eric about ripping off the Education Department he offers him a deal and Declan, attracted by the money, finds he has been bought off. Melanie has a go at Declan about it and Declan finally confronts Eric.