Education is a major focus of attention in the National Income Dynamics Study (NIDS). With the release of Wave 2 NIDS provides the first longitudinal data ever collected on education in a national household survey in South Africa. This makes it possible to study transitions in and out of school and transitions across grades in ways that have never before been possible. This report analyzes NIDS Wave 1 and 2 data corresponding to the sections of the questionnaires that are most specifically related to education –Module C of the child questionnaire, Module H of the adult questionnaire, and Module E of the proxy questionnaire. While many of the questions in these modules are similar to questions on other national surveys, tracking the same individuals across time allows us to identify changes over time while controlling for individual level characteristics. NIDS collects schooling information at each wave and for intermediate years. As such, by wave 2 there is information on the respondent's grade and enrolment status for each year 2007 (the year before Wave 1) through 2010 (the year of Wave 2). In addition, the outcome for each year 2007 through 2009 is collected.