When Luis Cali realizes that hostage Joey is the son of a Mafia boss, he decides to release him, out of respect for Don Albert Trotta. However, Joey has disowned his criminal father and refuses to leave his dorm-mates who have become close family to him. After a brief scuffle with the terrorist trying to escort him out, Joey seizes a gun and tries to shoot his captors, but is unable to control the recoil and is killed by one of the terrorists. As Dean Parker and others arrive to take Joey's body away, Cali maintains that the death was "an accident." Albert Trotta decides to avenge his son's murder. He directs his gang members in the prison to murder Enrique Cali in retaliation. In turn, the students and US authorities realize that Luis Cali will blow up the school upon hearing news of his father's death, so they draw up an immediate rescue plan using the information given to them by Billy and his friends.
At dawn, US Special Forces covertly infiltrate the school. Dean Parker also enters the campus on the trail of the US commandos. Billy and his friends meanwhile sabotage the wired explosives, incapacitate several terrorists with surprise attacks, and remove the students and headmaster to a secret basement chamber. Cali's men are soon overwhelmed by the assault. Realizing that he is losing and that his bomb detonator is disabled, Luis Cali takes Billy Tepper at gunpoint and holds him in the headmaster's office. However, Parker breaks in and gets wounded by Luis, who is then immediately killed by a US commando.