It is an important time in Max's life, for he is college-bound with his friends P.J. and Bobby. Believing himself to be free of his father, he strives to work together with his friends to become the top team at the college X-Games. Upon arriving, Max quickly gets himself noticed by "Gamma Mu Mu" fraternity sports team who are the reigning X-Games champions, in particular their leader, Bradley Uppercrust III. Bradley invites Max to join his fraternity, but Max refuses if he cannot bring his friends along with them. A rivalry starts between Max's team and Bradley's team, and they bet whoever loses in the finals will be towel-boy to the other.
Complications arise when Goofy is fired from his job due to an accident he caused. To make things worse, as Goofy only spent 3 years in college during the 1970s, he can't get another well-paying job unless he spends one more year to obtain a college degree. To his son's mortification, Goofy joins him at the campus to achieve the degree. Desperate to distract his father, Max talks him into joining the competing "Gamma Mu Mu" fraternity team, which works. Additionally, Goofy meets and befriends the college librarian, Sylvia Marpole, who shares his nostalgic love for the 1970s. Romance soon blossoms between Goofy and Sylvia, and they decided to go for a date that coming Saturday, which becomes a spectacular success with them dominating the dance floor with classic disco.
Although Max is initially supportive of Goofy's "distractions", tensions start to rise between them when Goofy beats Max in the first round during the X-Games semi-final, though his success is due to luck and one of Bradley's machinations implemented on Goofy's skateboard. After the semi-final, Max angrily snaps out and yells at Goofy to "Leave me alone and get your own life!!!". Max's rejection causes Goofy to lose his focus, forgetting his date with Sylvia and failing his first midterm. He eventually regains his focus and makes up with Sylvia, who then helps him study for his makeup exam, which he passed with straight-A's. Additionally, Goofy decides to quit the Gammas, not wanting to compete with Max at all, but once he leaves, he decides he should return his pledge pin, then he overhears that they are planning to cheat in the final X-Games events. Goofy tries to warn Max about this, but Max refuses to believe him.
At the X-Games final, Bradley and the Gammas repeatedly cheat in various obvious ways, but are not caught. Just before the final race, when the cheating Gammas get P.J. out of the way, Max apologizes to Goofy and asks him to join his team in order to avoid being disqualified for being one player short and Goofy gladly accepts. In the final race, one of Bradley's cheating maneuvers backfires when a giant X of an X-Games logo falls on Tank, one of Bradley's minions. Bradley flees for safety, but Max and Goofy decide to help Tank escape. Tank then turns on Bradley for ditching him, while Max wins the X-Games final, achieving a grand-prize trophy.
Once the term is over, Goofy receives his college degree and leaves Max to his own devices at college. Goofy and Sylvia drive off at a beach, implying that their future will be together.
