After being released from the hospital, Nancy attends college for a degree in Psychology. Freddy continues to kill the Elm Street children through their dreams. Most of these deaths are considered suicides.
Nancy Thompson is sent to a psychiatric hospital away from Springwood to recover from her ordeal and finish High School. The house at 1428 Elm Street is placed up for sale.
[Reference: As shown in the Nightmares on Elm Street comic book series and referenced in A Nightmare on Elm Street 3: Dream Warriors.]