Australia's changing social and economic trends have produced an increase in the number of homeless youths. Being homeless affects their educa- tional life chances. Education has many advantages for young people, including an escape route out of poverty. It may offer stability, community, a network of friends and may be a barrier against dropping out and potential homelessness. However, school may also be a source of alienation, rejection and further marginalisation. Federal and State governments need to address income support and accommodation in order for homeless youth to take full advantage of educational opportunities.