Brandon decides to tell Dylan about him and Kelly, but chickens out when he sees Dylan drinking again and in a bad mood.At the same time, Dylan visits a bank and finally realizes that all of his bank accounts and entire financial base has been cleaned out by Kevin and Suzanne's scam, but being the person he is, Dylan keeps his financial crisis to himself.Valerie appears charming and likable, but unknown to the group, she is actually cynical and manipulative and plots to get involved with Steve for his money.Donna returns from her summer stay in Texas and claims that she's over with David, who's doing a video for his film class, with a little help from Nat, about his summer of working with Babyface, dating and being dumped by both a girlfriend and the tour, and having some good luck near the end of the season.Cindy and Jim take in their friend's daughter Valerie (who is not as innocent as she seems).This season also marks the start of the Peach Pit's after-hours club, After Dark, initially run by Steve.
With her room vacant, the Walsh family agrees to take in Valerie Malone, the college-age daughter of a family friend who has committed suicide.
Alex tells Brandon he's contesting the election, using Josh's death as leverage to unseat Brandon in order to take the title of class president for himself, while Brandon is surprised and touched to learn Josh deeply admired him and resolves to fight for his office in Josh's memory.
Meanwhile, Donna finally meets a man, a KEG frat member named Griffin Stone that her mother sets her up with, that makes her forget David, who meets Clare via their work for the CU TV station and begins dating her.
The good news he is going to have a single dorm room and purchased a brand new car.
But that evening, Donna has an emotional meltdown when she runs into David at a nightclub.