After the summer break, everyone prepares for university life. After working all summer at the Beverly Hills Beach Club, Brenda leaves Beverly Hills to go to college in Minnesota and finds that her old friends now see her differently. Meanwhile, David and Donna seek out some affordable housing on the beach. As college approaches, Steve and Brandon rent a beach front house in Malibu for the final two weeks of the summer, and they get a surprise visit from Steve's former girlfriend Jill Fleming, which makes Celeste jealous. Kelly returns from a two-month trip to Europe, without Dylan, who has been rejected acceptance into Berkeley. Also, Andrea frets with Gil Meyers over her deciding to stay in California to go to college.

Brenda's return to Beverly Hills both startles her parents and upsets Brandon's plans for her bedroom. Brenda and Dylan spend a relaxing day together far away from the pressure of school and Kelly. Meanwhile, the rest of the gang begins their week at California University. Steve decides to rush a fraternity, Andrea meets her cute resident adviser Dan Rubin, Dylan chooses to forgo college, David and Donna try to audition for the DJ's on the California University's radio show, and Brandon becomes involved with college politics when he attempts to join the school paper the Condor and meets the student editor Josh Richland.