This study examined possible solutions to the paradox faced by college administrators as they try to increase diversity in the student body while minimizing tensions. The study used 1994 data on 2,050 second-year college students from the National Study of Student Learning, a longitudinal investigation of factors influencing student learning and development. Five dependent variables were considered: personal development, appreciation for fine arts, analytical skills, understanding science and technology, and openness to diversity. Seven independent variables were examined: gender, ethnicity, parental education, precollege ability, racial composition of high school, effort (hours spent studying), experience with collaborative learning, preference toward collaborative learning, and second-year gains. Collaborative learning was found to predict gains in cognitive level, affective level, and openness to diversity across all student populations. Results suggest that cooperative learning practices can create the process and setting whereby learning is maximized, and preconceptions are confronted through positive, productive interactions among students of different backgrounds. (Contains 43 references.) (DB)