The California Research Bureau (CRB), in participation with the California Council on Youth Relations (CCYR), and with support from The California Wellness Foundation, has been conducting a major research and policy initiative to bring attention to the issues facing homeless youth in California. These include lack of shelter and educational opportunities, health and mental health needs, and problematic interaction with law enforcement agencies and the courts. This report represents one of the research components of this project. Homelessness places youth at extreme risk of victimization and violence. Youth living in public places are often victims of physical and sexual assaults and robberies. Some youth are forced to engage in "survival sex" in exchange for shelter, food, or money. Crowded living situations and exposure to the elements lead to higher rates of illness, and the mental and emotional stress of homelessness leads to increased risks of substance abuse, depression, and even suicide. Given this context, school can be an oasis for homeless youth, where they can find security and support and obtain the skills they need to survive safely on their own. Yet, three-fourths of California homeless youth surveyed by the CRB were not in school. Most of the 54 youth surveyed were between 17 and 24, yet very few (six) had graduated from high school or attained a GED. This data is consistent with national surveys of homeless youth on their own. At the same time, a majority of California youth surveyed expressed the desire to return to school and had life goals (such as becoming a teacher or social worker or working in the medical field) that require extensive education to achieve. This report discusses seven key issues related to challenges homeless youth face in achieving their educational goals. It also presents policy options that address these challenges. A list of resources is included. Appended are: (1) Education Contacts for Homeless Children and Youth; and (2)Education Funding for Homeless Children and Youth. (Contains 112 endnotes.).