Plot summary

Best friends and nerds Lewis Skolnick (Robert Carradine) and Gilbert Lowe (Anthony Edwards) enroll in Adams College to study computer science. They are driven to college by Mr. Skolnick (James Cromwell) and Mrs. Lowe (Alice Hirson) worries for both of them back home. The Alpha Betas, a fraternity that includes most of the Adams football team, carelessly burn down their own house and, urged by Coach Harris (John Goodman), take over the freshman dorms, literally throwing the freshmen out into the street. Dean Ulich (David Wohl) designates temporary living space in the gymnasium and allows the freshmen to rush the fraternities. Lewis, Gilbert, and several other nerds fail to join fraternities. Lewis and Gilbert are humiliated by the Alpha Betas, who make them have sex with sheep as part of their initiation ceremony and then throw them out of the freshman dorm.The nerds include Toshiro Takashi (Brian Tochi), Arnold Poindexter (Timothy Busfield), Lamar Latrelle (Larry B. Scott), Harold Wormser (Andrew Cassese), Dudley Dawson etc. Gilbert meets Judy in computer class and takes a liking to her. To find a new residence, they create a list of all available homes near their college, but nobody will rent homes to nerds. The nerds are able to secure a dilapidated house near campus and repair it as a residence.The Alpha Betas, led by star quarterback Stanley Harvey "Stan" Gable (Ted McGinley) & his 2nd in command Frederick Aloysius "Ogre" Palowaski (Donald Gibb), are irked by the nerds' success, and Stan sets his fellow members to pull pranks against the nerds, which includes throwing a rock through the window saying "Nerds, get out". The nerds try to get campus police to help, but the campus cops are constrained by the Greek Council that adjudicates all such pranks, of which Stan is currently president. Stan also wont allow the nerds to form a fraternity as they need a National fraternity to be their sponsor.The nerds decide to seek membership on the Greek Council by joining a national fraternity. After 29 rejection letters, the only one that considers them is the black fraternity Lambda Lambda Lambda (Tri-Lambs), led by U.N. Jefferson (Bernie Casey). As only one of the nerds is black, Jefferson is about to disapprove when one of the nerds sees in the fine print that all applicants are given probationary membership.The nerds set up a large party with the Omega Mu sorority, similarly, made up of female nerds, including Gilbert's girlfriend Judy (Michelle Meyrink), and invite Jefferson to attend. The party is dull until Dudley "Booger" Dawson (Curtis Armstrong) provides them with high quality marijuana. The Alpha Betas and the Pi Delta Pis, the sorority to which Stan's girlfriend Betty Childs (Julie Montgomery) belongs, then disrupt the party by bringing and releasing pigs. The nerds exact revenge on both groups by pulling similar pranks. They get into the Pi Delta Pis, install cameras all over their dorm and transmit live stream of naked girls all over the college campus. They get into the Alpha Betas change room and mix liquid heat into all their jock straps. Impressed with the nerds' tenacity, Jefferson grants them full membership.However, the harassment intensifies, and Stan Gable stonewalls any attempts by the Greek Council to sanction Alpha Beta. The nerds realize the only way to get the Council to help is to put one of their own in as president, which they can do by winning the Greek Games during homecoming. Partnering with the Omega Mus and using their extensive knowledge, the Tri-Lambs compete strongly with the Alpha Betas/Pi Delta Pis during the athletic events. For e.g., at the cycle race (20 laps, and one beer for each completed lap), the Tri-lambdas use chemicals that counter the effect of alcohol in the blood stream and win the race. But they lose events like the wrist wrestle and the Trojan horse (Ogre sits on the horse and due to his heavy weight, nobody can dislodge him). They win the tug of war by letting go of the rope and thus their opponents lose balance and fall. Booger helps them win the belching contest against Ogre. Lamar designs a new aerodynamic javelin and wins the contest.At the charity fundraiser, the nerds heavily outsell the Alpha Betas by offering pies with naked pictures of Betty and other Pi Delta Pis on the bottom. During this, Lewis, who has fallen in love with Betty, steals Stan's costume and tricks Betty into engaging in sexual intercourse with him. Though surprised when Lewis reveals his identity, she admits he was "wonderful". Finally, the nerds dominate the musical competition with a techno-computer-driven musical production, winning the overall games. Lewis immediately nominates Gilbert as the new Council president.Coach Harris lambastes the Alpha Betas for losing to the nerds, and Stan leads them in vandalizing the Tri-Lamb house. The nerds become despondent, and Gilbert decides to barge into the middle of the Homecoming Pep Rally to address his complaints. The Alpha Betas try to stop him, but Jefferson and a group of national Tri-Lambs arrive to intimidate the Alpha Betas, giving Gilbert the opportunity to give a rousing speech about standing up to discrimination. Lewis and the other Tri-Lambs, many alumni, and Betty, who announces she is "in love with a nerd", join in cheering Gilbert, soundly shaming the Alpha Betas. An emboldened Dean Ulich instructs Coach Harris that the Tri-Lambs will now live in the Alpha Beta house, while the Alpha Betas will live in the gym until they can repair the Tri-Lamb house.