This article discusses how student identities are constituted through social categories and how this affects students’ educational trajectories. It demonstrates how dropping out is a long-term process involving social interactions between the students. It is based on a field study in which the author was enrolled as a student at the car mechanic program at a vocational education and training school. The various social categories emerge in contrast with each other and have fundamental influences in defining the students’ scope of action. The discussion calls for awareness of reproducing effects of taken-for-granted logics and discriminatory practices and for including identity-related perspectives on peer relations, when studying dropout.