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.

Barbarino gets his own apartment and the Sweathogs think they have a new hangout. Barbarino tells them they are only welcome at his apartment when he invites them over. Offended by this, the Sweathogs storm out of his apartment.