Jo is given a job house sitting for actor Richard Moll in Malibu, which is fortunate since she is unemployed and homeless at the moment.
Richard Moll returns home to find that a running bathtub has flooded his place while in Jo's responsibility.
A professor with a reputation as a playboy causes rumors to be spread around school when Blair starts spending time with him.
Jo enjoys her new job at the community center doing social work, but soon finds out there is no money left in the budget to pay her salary.
Tootie goes on a date with another man when her boyfriend says he can't make it to the winter carnival.
Blair is awestruck when the honor student she invites over for a study session, seems more interested in Beverly Ann.
Blair runs off for tea with a friend, leaving her baby sister with the gang, only to return to find out no one is sure where she is.
Beverly Ann has a glimpse of what life would have been like if she had never come to Peekskill. Blair's finances, Tootie's engagement, Natalie's freedom , Pippa's self respect, Andy's home life and Jo's life are all affected.
Andy's new big brother is hiding a secret, which maybe why his is living each day as if it was his last.
Natalie and Tootie's boyfriends don't exactly see eye-to-eye when they meet for the first time. Meanwhile, Jo is furious over a repair job on her bike.
Natalie and Snake spend their first night together, and she fears the reaction both her friends will give and what Snake is feeling.
Everyone is excited when Rick proposes to Jo, all that is except for Jo, who has yet to say yes or no.
Jo's job at the social services center puts her into action when the supervisor for suicide prevention threatens to jump from the top of the building.
Natalie's new roommates are not as she had expected when she makes her move into a Soho apartment in New York City.
When Eastland threatens to close due to bankruptcy, Blair comes through and purchases the school in order to keep it open, but needs to interview for a new headmaster and round up students.