diff --git a/workshop-images/base-environment/opt/eduk8s/etc/profile.d/02-exercises.sh b/workshop-images/base-environment/opt/eduk8s/etc/profile.d/02-exercises.sh
deleted file mode 100644
index dee95424..00000000
--- a/workshop-images/base-environment/opt/eduk8s/etc/profile.d/02-exercises.sh
+++ /dev/null
@@ -1,13 +0,0 @@
-# Set the working directory for workshop exercises. The working directory for
-# the editor and terminal will be changed to this directory so any extra files
-# and directories in the home directory are not as visible.
-
-EXERCISES_DIR=${EXERCISES_DIR:-exercises}
-
-if [ -d $HOME/$EXERCISES_DIR ]; then
-    TERMINAL_HOME=$HOME/$EXERCISES_DIR
-    export TERMINAL_HOME
-
-    EDITOR_HOME=$HOME/$EXERCISES_DIR
-    export EDITOR_HOME
-fi
diff --git a/workshop-images/base-environment/opt/eduk8s/sbin/start-editor b/workshop-images/base-environment/opt/eduk8s/sbin/start-editor
index e5dec18a..59446236 100755
--- a/workshop-images/base-environment/opt/eduk8s/sbin/start-editor
+++ b/workshop-images/base-environment/opt/eduk8s/sbin/start-editor
@@ -6,8 +6,16 @@ set -eo pipefail
 
 CODE_SERVER_BIND_ADDRESS=${CODE_SERVER_BIND_ADDRESS:-127.0.0.1}
 
+EXERCISES_DIR=${EXERCISES_DIR:-exercises}
+
+if [ -d $HOME/$EXERCISES_DIR ]; then
+    EDITOR_HOME=$HOME/$EXERCISES_DIR
+fi
+
 EDITOR_HOME=${EDITOR_HOME:-$HOME}
 
+export EDITOR_HOME
+
 exec /opt/editor/bin/code-server \
     --bind-addr "$CODE_SERVER_BIND_ADDRESS:10085" \
     --auth none \
diff --git a/workshop-images/base-environment/opt/eduk8s/sbin/start-gateway b/workshop-images/base-environment/opt/eduk8s/sbin/start-gateway
index 0b4f6865..ca8a64cf 100755
--- a/workshop-images/base-environment/opt/eduk8s/sbin/start-gateway
+++ b/workshop-images/base-environment/opt/eduk8s/sbin/start-gateway
@@ -9,6 +9,16 @@ export XDG_CONFIG_HOME
 TERMINAL_LAYOUT=${TERMINAL_LAYOUT=`workshop-definition -r '(.spec.session.applications.terminal.layout // "default")'`}
 export TERMINAL_LAYOUT
 
+EXERCISES_DIR=${EXERCISES_DIR:-exercises}
+
+if [ -d $HOME/$EXERCISES_DIR ]; then
+    TERMINAL_HOME=$HOME/$EXERCISES_DIR
+fi
+
+TERMINAL_HOME=${TERMINAL_HOME:-$HOME}
+
+export TERMINAL_HOME
+
 cd /opt/gateway
 
 NODE_PATH=`pwd`/node_modules
diff --git a/workshop-images/conda-environment/start-jupyterlab.sh b/workshop-images/conda-environment/start-jupyterlab.sh
index 6e559670..7b6c07b9 100755
--- a/workshop-images/conda-environment/start-jupyterlab.sh
+++ b/workshop-images/conda-environment/start-jupyterlab.sh
@@ -22,8 +22,16 @@ else
     conda activate base
 fi
 
-if [ x"$TERMINAL_HOME" != x"" ]; then
-    cd $TERMINAL_HOME
+EXERCISES_DIR=${EXERCISES_DIR:-exercises}
+
+if [ -d $HOME/$EXERCISES_DIR ]; then
+    TERMINAL_HOME=$HOME/$EXERCISES_DIR
 fi
 
+TERMINAL_HOME=${TERMINAL_HOME:-$HOME}
+
+export TERMINAL_HOME
+
+cd $TERMINAL_HOME
+
 exec jupyter lab --ip 0.0.0.0 --port 8888