It's winter break and Kaitlin Cooper has returned home from her Montecito boarding school.

When college acceptance and rejection letters are received the kids must consider what path they are going to follow. Ryan and Sadie are trying to decide what they will do after high school. Taylor holds a college party and Summer and Marissa fix their friendship problems.

When Seth visits Summer, she realizes that her materialistic, gossiping self may be forever gone ever since she went to Brown. Ryan helps Taylor with her divorce. Temptation stirs when Kaitlin and Julie vow to stay out of trouble. And Sandy longs for a guy's night out.

Ryan overcomes his indecision and competes with Henri-Michel for Taylor's affections. Che leads Seth on a trek of spiritual renewal. Meanwhile, Kirsten and Julie have to do some damage control.