When compared with university freshmen, students beginning their collegiate studies at community colleges are less likely to attain a baccalaureate degree. After equating for differences in students' entering abilities, socioeconomic background, employment status, on-campus residence, and pattern of attendance, however, this discrepancy narrows. Because minority students are over-represented in two-year college enrollments, any differential in progress is magnified for them. Reasons for the difference in baccalaureate attainment are difficult to ascertain because of the paucity of consistent information about student aspirations and progress. While there are no reliable national data sets concerning transfer rates and student outcomes, statewide data show that well-articulated community college and public university systems lead to significant proportions of university enrollments provided by community college transfers. Though information on college effects on the transfer rate is scanty, studies suggest that the community college environment could be made more conducive to student progress if college policies were modified to encourage students to attend full time, obtain on-campus employment, and become more involved with the college. State policies and interinstitutional agreements regarding curriculum, academic support services, and financial aid also have an impact on transfer rates, and could be modified to benefit all community college matriculants. A 25-item bibliography is included. (EJV)