According to a written statement received from the student pilot, during the takeoff roll and rotation from runway 17, the student pilot noted that the flaps were still extended to 30 degrees. The student pilot retracted the flaps and the airplane began to drift to the left. He attempted to correct back to centerline but was unable. The airplane departed the left side of the runway, continued across the field and impacted a perimeter fence. The empennage of the airplane was substantially damaged. An examination of the airplane and its systems, conducted by a Federal Aviation Administration inspector, revealed no anomalies.