Kotter becomes the new vice principal and the Sweathogs think they can get away with anything they want. When they tie up Carvelli and Murray, Kotter gives them detention and they decide to quit school and get jobs.

Horshack, Epstein, and Washington, now dropped out of school, decide to look for jobs. Kotter then asks Barbarino, now working as an orderly, to convince them to go back to school.

Buchanan High gets a new student, Beau DeLabarre from New Orleans, who uses his southern charm to hit on several girls including Juan's girlfriend. Juan strikes back, then Beau sets him up with a girl who has a jealous husband.