Thanks to Dean Loward, James is finally graduating. To mark this momentous occasion Zach, Karen and Larry throw a bash at their newly rented house. Incoming freshmen Victoria, Maxwell and Olga join in the fun.
As Karen sits vigil at Zach's bedside, James and the students ready the bar for a benefit to fund Erin's dance performance; Larry gets better acquainted with Olga; and Ciara finally learns the identity of her mystery lady.
Zach's awakening is marked by a profound change and he gives away all his possessions to free himself. Freshman Victoria, Olga and Maxwell consult Karen, Larry and James about their romantic difficulties and Minx makes James an offer he may not be able to refuse.
Victoria and Ciara try to determine their true sexual orientation by having sex with The Horse and Larry; "The Universe" directs Zach to Anita's yoga studio; James and Erin play a drunken game of chess.
Graduation is assured for Larry and Ciara when Victoria bravely outs herself by showing the purloined film; Olga confesses Mr. Wright's blackmail plot, and Larry tells her they can marry in Uzbekistan; Karen makes a career choice; Dawn and Maxwell get a big offer; Phylicia rekindles her affair with Dean Loward.