After hearing from Starswirl the Bearded and his travels, Twilight learns about a place in Las Pegasus called Friendship University that promises that you can learn friendship in half the time as Twilight’s school. Twilight and Rarity investigate and find that it’s being run by the Flim-Flam brothers and they get EEA accreditation from Neighsayer because Season Finale setup.
Rarity and Twilight go undercover to find evidence of the scam and the latter (with a poor disguise) gets caught breaking in while the former blends in because she had a better disguise. They discover that the while tuition is free, the worksheets are not and they are funding the Flim Flam’s resort expansion. Not necessarily illegal, but it is certainly unethical and certainly a shot at for-profit education. Something the Flim-Flams did that is illegal was plagiarize Twilight’s school guide. Starswirl, who was a student at the school, tells them to return the money to the students and shut down the university.
So yes, this is quite a preview of the season finale with Neighsayer challenging Twilight and the hinting of Cozy Glow as subtle a a brick through a window.
The episode itself is good, though points off because Twilight’s disguise leaves a lot to be desired while Rarity again steals the show. Surely she could have done better for Twilight’s disguise. Outside of that, we do get a good lesson in standing up for one’s beliefs even though it means risking your reputation. Overall, what this episode does is to provide some setup for the Season Finale.