The kids are back to school in a new building. Erica had her first ""serious"" boyfriend, and think she may be pregnant after a night of unsafe sex with her Jason. Spike's daughter, Emma goes to daycare in the same building as Degrassi high. The Degrassi gang are both fearful of initiation, and they do not know what to expect out of the older bullys like Dwayne, Tabi, and Nick. Joey and Caitlin are still going out but his priorities are the promotion of his band, The Zit Remedy, (which this season will have a new name called The Zits)

Erica decides to keep the pregnancy a secret (the only person she tells is her twin sister, Heather). She also decides to have an abortion. Heather, disapproves of this, but accompanies her to the abortion clinic anyways.Also Alexa dislikes her boyfriends(Simon) new modeling job.

Michelle discovers the complicated nature of divorce when her parents decide to go their separate ways. She blames her father at first, but when it turns out that her mother had an affair which actually was the cause of separation, Michelle becomes more hesitant than ever. BLT is afraid that Michell's father will try to break up between them, so his advice to Michelle is to live with her mother. Michelle almost accepts BLT's advice, but after seeing that her father is helpless in house keeping, she decides to stay with him. Joey proceeds with his plan to revive the band, and suggests a video clip which should be ""the best one ever"". Of course, such tiny obstacles as lack of a video camera won't stop Joey, so he approaches Lucy who just got a new camera from her father. But, as usual with Joey's plans, things go wrong. First, Lucy wants to to shoot the clip by herself, so Joey has no choice but to agree. He offers Caitlin to appear in the clip wearing a bikini, but after getting quite a

Everyone wants Caitlin.Arthur keeps fantasizing about her, but his dreams keep getting interrupted before he can even kiss her.Haha.Joey has a date with her on Friday, but she cancels. Caitlin instead goes out with Claude on Friday to see some French film.Caitlin must be crazy. Joey is so much more cuter and funnier and better than Claude could ever be.While auditioning for the school play Kathleen gets intrested in someone, a junior named Scott.

Lucy finally agrees to shoot The Zits' video - if they can all agree on a script, persuade Clutch to lend them his car, coax Lucy into shooting it with Clutch around… Life is almost perfect for Joey - he'll deal with the small problem of Caitlin just as soon as the video's done. The hate campaign against Erica escalates, and Erica is determined to find out who is putting pamphlets and slogans on her locker.

Kathleen's dreams are coming true. Scott is the perfect boyfriend - considerate, affectionate, even gives her flowers. She can forgive him if he's kind of hot tempered - he's got a lot of troubles at home, and really but she dosen't deserve it when he gets upset with her because she was talking to Luke and beats her up. Liz encourages Spike to go out with a boy for the first time since Emma was born, and she's so nervous she almost blows it.

Heather has a crush on Wheels. She throws herself at him, and they start making out and are about to go to the next base when Heather's sister interrupts them. Wheels promises Heather he'd call her, but then he never does because he only liked her as a friend.

Kathleen, Melanie, and Diana befriend Maya. However, they don't invite her to the movies because the theatre doesn't have a wheelchair ramp. Maya finds out they went without her, and she's hurt, because they could've just went to a different theater that was accessible to handicapped people.

L.D. finds out that she has leukemia.

Diana is determined to grow up, but her older brother, left with the task of bringing her up after their father died, is so old-fashioned. And Yick, the object of her affections, is going to be at Melanie's party. How will Diana's brother ever know she went? Joey, Snake and Wheels decide it's time they expanded their horizons a little and attend a strip show. But, as always with The Zits, things don't go quite the way they were planned.

Michelle finds her father impossible to live with, but now that she's sixteen she can legally move out, if only she had the money. Of course, there is that family ring she got for her birthday. Spike is nervous about how fond Patrick is becoming of her - she just doesn't want to get hurt. Joey and Snake are excited about starting driving lessons.

Caitlin and Claude want to do something to protest against a factory involved in nuclear missiles. The peace group they belong to advises them to cool it, but they can't just stand by and let it go on.Scott has been harrassing Kathleen for a while and she gets sick of it and presses charges when he beats her up on her way home from school.

When Erica starts seeing a new boy, it frightens Heather. One abortion was bad enough, but what if she goes too far again? Heather has to come to terms with her own guilt at having supported Erica. Alison says she's giving up on her campaign to win Snake, but when he invites Alison's best friend Amy to the dance, the claws come out. Scooter suddenly notices that his pal Tessa is (gasp!) a girl!

Joey is diagnosed with a learning disability. He contemplates dropping out of high school, but changes his mind after talking to Caitlin. Caitlin tells him to stop feeling sorry for himself, because he's not the only one with a disability, because she has to deal with having epilepsy.

Elsewhere, everyone cheats on a test. The teacher says since everyone gets an A, that test must not have been hard enough, so it won't count and he'd give everyone a harder test.

Lucy becomes director and writer of her first film: a feminist horror flick starring the Zits, Simon and Caitlin, with Alexa, Tim and Heather as crew. But the film that's playing in Lucy's mind is a far cry from the one that's unfolding in the empty Saturday morning corridors of the school. Spike is nervous when Shane starts hanging around the school watching her.

Caitlin hears that Ms. Avery has been fired from her job in the school resource centre. When she starts a petition around school, protesting her firing, Mr. Raditch intervenes. He tells Caitlin she was offered a job as a substitute teacher, but turned it down. Caitlin confronts Ms. Avery about this. Ms. Avery explains she wants a classroom of her own with students of her own. They get into an arguement, but later reconcile at Ms. Avery's going away party.

Also Michelle takes too many caffine pills and BLT takes her to the school nurse.