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This report looks at the pathways of recent school leavers who enter the higher education sector in Australia, focusing on the first three years following senior secondary school. Based on data from the Longitudinal Surveys of Australian Youth (LSAY), it aims to: provide estimates of the proportions of entrants who change courses or leave the higher education sector before completing a course; identify factors associated with course change within the higher education sector; identify factors associated with attrition from the higher education sector; and examine the initial education, training and labour market destinations of those who leave the higher education sector before completing a qualification. The study found that 13 per cent of young people who first commenced higher education in 1999 or 2000 had changed courses within the higher education sector by 2001, and 14 per cent left the higher education sector without completing a qualification and had not returned by late 2001. However, attrition from the higher education sector did not necessarily mean the end of education and training as students may move to the vocational education and training (VET) sector or enter full-time employment in their chosen field. The study also found that the factors associated with course changes are different from those associated with attrition.