This study examines the role of contact with diverse groups on prejudice levels of 284 college students at three midwestern colleges. The effect of Amir's five contact factors was studied in relation to students' generalized prejudice as well as prejudice toward people who differ from them in race, sex, and sexual orientation. Results show the reduction of general and specific prejudice was significantly associated with contact that occurs between equals, and contact that is interpersonal, cooperative, rewarding, and positively sanctioned by students' institutions and social networks. The article discusses implications for diversity programs and provides institutional strategies for creating meaningful diversity education on college campuses. (Contains 1 table.)