This study analyzed the academic and demographic characteristics of 2,939 students admitted to the University of Louisville (Kentucky) Preparatory Division (an academic/enrollment unit for all students initially inadmissible to a degree-granting unit) who achieved eligibility to transfer to a degree-granting unit of the University. It also examined their performance patterns and characteristics in relation to the aggregate Preparatory Division population. The study resulted in the following findings about the students transferring to a degree-granting unit (as compared to the University's undergraduate population): Division transfers were more likely to be female, African American, first-generation college students, employed, and on financial aid; they were a better-performing segment of the Division's aggregate population but not a particular demographic or academic subgroup; first-year academic performance related strongly to students' initial level of academic preparation, but retention and graduation related more strongly to economic factors such as employment status, financial aid, and parents' education; transfer students were prepared when they entered the University from the Division; 291 Division transfer students graduated from the University, earning 309 academic degrees; the Preparatory Division strongly enhanced performance, retention, and graduation rates of white females; white females tended to perform better, while African Americans were more likely to persist. Appendices contain data tables. (Includes 25 references.) (JB)