Horshack joins a religious cult and decides to drop out of school to go live with with the cult members. But before he leaves, the Sweathogs pull him into the school bathroom and try to deprogram him.

The Kotters are looking for a new apartment and having no luck. Juan has an answer to their problem. His Uncle owns a building in a good neighborhood at the right price. The gang helps the Kotters move in and everything seems to be going great...until Moe Epstein tells them that there are no babies allowed.

Woodman writes a novel set during the Civil War era that very closely parallels the Sweathogs, and the Sweathogs are not happy about it. So they write a novel of their own set in outer space and depicting Woodman as the villain.