Spot storyline with school setting (7)

I believe the answer is:

splotch

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'spot' is the definition.
(splotching is a kind of spotting)

'storyline with school setting' is the wordplay.
'storyline' becomes 'plot' (I've seen this before).
'with' means one lot of letters go next to another.
'school' becomes 's'.
'setting' becomes 'ch' (I am not sure about this - if you are sure you should believe this answer much more).
'plot' after 's' is 'splot'.
'splot'+'ch'='SPLOTCH'

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(Other definitions for splotch that I've seen before include "Mark" , "Spot, splash, smear" .)

I've seen this clue in The Guardian.

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