In 1738, a pact is drawn up between the Alden family and a highly respected Colonial college: If any female member of the family can pass her college exams within a 200-year period, ownership of the institution will be turned over to her. Two hundred years later in 1938, the last of the Alden girls,

In 1738 in Aldentown, Gracie Alden fails to graduate from college for the ninth consecutive year and her grandfather, founder of the college, wills it to the first female Alden progeny to graduate. Two hundred years later, Gracie's namesake is again about to lose her inheritance, which will be forever forfeited to the city. Bud Brady offers to tutor her for $10,000, to be paid by the Guarantee Trust Company, which controls the university's mortgage. Guarantee Trust is owned by Hubert Dash, an Alden descendant who has a chronic fear of women and who will prepare Gracie's final exam. Hubert's secretary, George Jones, shares Hubert's fear of women. Meanwhile, Dash's nephew, Martin Bates, must serenade Ginna Ashburn, daughter of the university president, for a fraternity initiation and is caught shirtless by the prudish Dean Sleet. On the day of the final, George conducts the exam in Hubert's absence. Gracie, equipped by Bud with a cheat-sheet, passes by guessing answers off his laundry bill. Finally the owner of the university, Gracie appoints herself "Dean of Men," abolishes all entrance exams, and hires a new faculty of incompetent "kooks." Hoping to avoid the school's sinking reputation, Martin's guardians at Guarantee Trust ask him to transfer to Oxford, while Ginna's father resigns. Having sworn his love to Ginna, Martin promises to talk to his uncle, but Hubert, using a misogynistic syllogism, deduces that all women are schemers and threatens to retract Gracie's university land grant pending a new examination. Meanwhile, Bud gets the new faculty femme fatale to sneak into Hubert's room and scare him out of town. Gracie, overhearing their scheme, goes to warn Hubert and they fall in love. The next day when Gracie's exam is broadcast on national radio, Bud feeds her the answers through headphones and is discovered. Gracie then resolves to be herself and returns the university to Ashburn, to the relief of Ginna and Martin, and confesses her marriage to Hubert the previous night.