Bailey is not doing so well in school. Callie throws a big party at their place and the landlord threats to kick them out. He is trying to stay sober, but it's hard. Unable to keep up with school, he decides to quit. Charlie doesn't want to rush things with Grace, but the more they try to slow it down, the more they want to be together, so they sleep together. Julia is accepted in Stansford, but is not sure she wants to go. She wants a time off studies, and to find herself. Charlie thinks it's all Sam's fault. Ross is dating one of Claudia's teachers, and she outs him to the entire school. She tries to fix it, but Ross tells her it's not that easy.