There's gossip galore when private girl's school floor monitor Anne Shirley reports a fellow student (Nan Grey) for being out all night. When Grey is threatened with expulsion, the students turn against Shirley who is only attending the exclusive school because of a scholarship. The girls are not only being taught their regular academics, but deportment and other old fashioned ideals (which have all pretty much disappeared from the world we know today), something which is difficult to obtain thanks to their revenge on the guilt-ridden Shirley.
The personal family history of Grey is explored when her estranged parents (Pierre Watkin and Doris Kenyon) show up just as the student council (under the thumb of school mistress Cecil Cunningham) votes whether or not she will be expelled. It's through helping their daughter through her problems that they are able to deal with their own issues. Grey's wise father urges her to try and find forgiveness for Shirley who becomes the victim of some mean-spirited revenge from the other students. The story explodes when a misunderstanding at the school dance causes Shirley to slap Grey, and her telling off of the entire academy.
As times change, so do certain elements of society, but for teenaged girls, the same issues continue. Bullying uppity cliques go after the underdogs, and the impact of their nasty actions have many long-term effects. "Such lovely, innocent well-bred little girls", the naive Cunningham tells another teacher, not knowing of the silent politics of the students she's in charge of. A secondary story focuses on the student's favorite teacher (Gloria Holden) and her romantic issues with handsome Ralph Bellamy. Having just been seen as "Dracula's Daughter", the transition of the uniquely striking Holden into heroine is quite amazing. Others among the faculty are Marjorie Main, Heather Thatcher, and Virginia Howell whose last name makes her nicknamed "Lady MacBeth".
While Judy and Mickey were busy at MGM "putting on a show" and Deanna Durbin was always playing matchmaker for older folks, this takes on a much more realistic look at the troubles of teenagers and the pressures they face in the onslaught of adulthood. Some of the girls certainly are not nice young ladies as Cunningham falsely believed, but the two leads (Shirley and Grey) are divided mainly because of misunderstandings, nasty gossip from the others and their own pride. When the two girls do finally come to their senses, it becomes a matter of atonement, and that is where the strength of the wise screenplay comes in, making this all the more powerful.