When they arrive at college, Erik is disappointed that he and Cooze will be rooming separately, with Cooze in a single room and Erik sharing a double with someone else. Erik is no longer with Tracy, his girlfriend in the last film, as she has left him for her ex-boyfriend Trent. Erik meets a girl named Ashley in the coed bathrooms, courtesy of his party-prone sex-crazed cousin Dwight. Things seem to be going well until Erik urinates on his pants. Erik leaves, and meets his room-mate and future BETA brother, Bobby. Erik is grossed out as Bobby is having sex with his girlfriend whilst cooking bratwurst and engaging Erik in the awkward "getting to know you stage." The boys go through a long list of trials to get into the BETA fraternity: getting their asses signed by a stripper, having sex with a professor, marrying a male friend in Canada, and placing a live ostrich in the GEEK fraternity house.
After they complete their final task, which involves stealing something from the GEEK house, Edgar, the GEEK's president, challenges the BETAs to the Greek Olympiad. The loser will give up their charter and be evicted from their house. It is revealed by Rock, Dwight's former nemesis, that due to an altercation between Edgar and a sheep, Rock's entire fraternity was kicked off campus. Dwight is hesitant, but Rock states that what they had was a rivalry and that "the enemy of my enemy is my friend." The first competition is won by Beta House as Dwight and Edgar compete by removing girls' bras. Beta House loses next two competitions: a light saber duel and catching a greased pig. When the BETAs and GEEKs reach the final challenge, they use Edgar's fetish for sheep against him, which ultimately costs him and his house the tournament. The BETAs win and Mr. Levinstein, as the officiate, hands over the golden hammer to Dwight. The BETAs move into their new mansion, courtesy of the GEEKs, and hold a massive toga party, where Cooze, much to his relief, finally sleeps with Denise and all suspicions of her being a man are gone. She simply has the rare female ability to ejaculate. As the morning comes, BETA president Wesley wakes up finally believing that his curse as the blackout menace is over, only to hear the toilet flush. He is confronted by the female bodybuilder formerly of the GEEK house. At the end of the credits, Edgar is hanging out at the Silver Dollar, sniffing the headpiece of the sheep costume. He gives it to a passing stripper, instructing her to use it for her next dance.