A new year begins and Manny wants to continue to act. After a disappointing audition, she contemplates plastic surgery. When things can't seem to get worse, Manny bares it all for Peter, the new kid with a video camera. Craig gets a check from his late father.

Manny can't seem to remember the previous night. When she finds out that Peter filmed her - topless. After denying to date him, Peter releases the video to the entire school. Marco suspects Craig and Ellie both have feelings for each other.

Paige has got her whole life mapped out. She plans on being accepted into the marketing program at the best university in Canada. Matt will transfer there and they'll live in a cozy apartment together. And it'll all be so perfect. ? But Matt returns from his tree-planting gig in B.C a changed man, and that's just the beginning. The situation goes from bad to worse and Paige finds her future dreams coming completely unraveled?

J.T. has got his license. He's got a steady girlfriend in Liberty, who happens to be Student Council President. So why is he feeling anything but a "man"? Because Liberty's in control. Desperate to prove his masculinity, J.T. brags about his & Liberty's sexual exploits. When Liberty finds out J.T. has been telling tales, she loses it. J.T. can't take it anymore, and when he tries to break up with Liberty? she has a surprising revelation for him.

Spinner tries to win over Darcy by attending her "Friendship Club" meeting. Spinner finds himself drawn not only to this cute girl, but also to her message.

After all the craziness of last year, Craig has one overriding goal: no drama. He's focused on his friends, his family, his studies, and his band - a reconstituted Downtown Sasquatch but no Spinner - a new addition is rocking the drum-kit? Ellie Nash! Ellie seems to think everything about Craig is great. But she denies she has a crush on him point blank. Craig seems to be falling under her spell until? an old flame re-enters Craig's atmosphere: Manny Santos - still in crisis since her father kicked her out. And as Craig gets sucked into her orbit Ellie fears the worst. Things come to a head when Manny crashes their wedding gig and steals the spotlight. Will Ellie come clean in time and confess her crush to Craig? Or will she lose him forever to Manny?

Jimmy feels conflicted when he must choose between his old dreams of basketball and his newfound passion for art. Liberty and J.T. decide to get outside advice regarding her pregnancy.

Six months pregnant, Liberty and J.T. decide to tell their families about it- and that they're moving into their own apartment. J.T. decides to work several jobs in order to support the baby, including working at a pharmacy. But when they are in desperate means of cash, J.T. takes the advice of Jay Hogart, and steals some drugs to sell. Snake decides to shed his old skin when he goes through a mid-life crisis.

J.T'.s drug dealing catches up to him, loosing the trust of Liberty and perhaps even his baby, but it later escalates into something even more serious. Snake continues his mid-life crisis, and trades his old wheels in for a brand new motorcycle, and attracts the attention of his boss, Ms. Hatzilakos.

Someones definitely interested in Marco. It's Tim, but not for the expected reason. Tim knows Marco is gay, and has been struggling with how to come out to his friends and family. Naturally, he turns to the most openly gay student at school, Marco, for advice. Marco is flattered with his role as a mentor, but when Tim asks Marco what it was like to come out to his parents, he conveniently leaves out the detail that he's never told his dad. Marco is a hypocrite and knows he has to finally deal with his situation. Meanwhile, Emma starts to crave Peter's ultra-confident way of making her feel like she's the most amazing girl in the world - at the risk of losing Manny, her best friend.

Spinner's new life could not be better than ever. He has a friend again, Jay, and he has an amazing girlfriend, Darcy. The only problem is that Darcy and Jay don't get along, because they are complete opposites. Now Spinner has to chose between Jay, who got him in trouble with Jimmy, or Darcy, his amazing supportive girlfriend.

Paige's friendship with Alex reaches new heights when they realize that they might be closer than they thought. Also, Emma goes on her first date with Peter.

Paige has to make some tough decisions when her sexuality becomes the hot topic at school.

Craig and the band might after all have a chance at true fame, but is everyone willing to takes the sacrifices? Also, Liberty is working to hard under her condition

Marco and Spinner's differing opinions over a controversial school issue threatens their friendship. Meanwhile Caitlin returns to help a troubled Spike.

With Snake gone and Spike totally down in the dumps, keeping the household together has fallen totally onto Emma's shoulders. She puts everything she has into looking after Jack, Spike and Manny. When Manny begs Emma to help her lose weight for an upcoming audition, Emma throws herself into the task. She has no control in her life - she can't bring Snake home, and she can't even date Peter for fear Manny will find out. But she can control what she and Manny eat. And she finds some comfort in that.

Emma is becoming overwhelmed by all the stress her family has put on her, and the fact that she hasn't been eating. People are starting to notice, including the ones she loves. Is everything to much to handle?

Facing the pressure of year-end exams, the furthest thing from Marco's mind is what happened a year ago - when Dylan stomped all over his heart. Marco takes this as a sign that he's over Dylan for good. Such a good sign, in fact, that he decides to take his flirtation with Tim to the next level. They have their first date, and it all goes smoothly - including their first kiss (a first for Tim). That is, until Marco spots Dylan at the bar. Seeing each other again at Paige's party, emotions run high and it forces Marco to realize that despite his desire to be over Dylan, he is not. The same goes for Dylan - they are both very much in love. Still. Meanwhile, Liberty is having a tough time dealing with the fact that her baby is moving with it's new family all the way across the country, and she's becoming depressed.

The end of another school year finds Darcy's faith - in her boyfriend - being put to the test. Darcy grapples with a harsh reality of teen romance: jealousy. Though Spinner is in no way a virgin - he decides to let Darcy believe this lie, knowing how much it will freak her out to learn about his sexy past with Manny and others. But when she finds her boyfriend isn't a virgin AND a liar it's clear that she can't let go of his past. This boils over into a huge, ugly breakup fight and Spinner runs for consolation to his old girlfriend Paige.

It's the end of the year for the students in Degrassi, and there is still the same amount of drama. As Ashely returns, Jimmy bonds with her again. Also, Spinner and Paige discuss what happened the night before, and it leads to what neither expected. And what happens put a lot of pressure on his relationship with Darcy.