This paper reports on research that examined longitudinal data on students entering Tennessee Board of Regents institutions of higher education after the implementation of a state-mandated developmental studies program. The program identifies and helps at-risk students to persist in college to graduation. Data analysis is presented from a 1986 cohort of 16,611 entering freshmen, studied over a 3-year period. The primary focus of the study is whether the developmental studies program helps retain students who are underprepared. Conclusions on the following questions are presented based on the study data: (1) How many students are underprepared? (2) Are the placement tests functioning well? (3) How do the rates of retention compare for students who placed in developmental courses and for students who placed in college courses? (4) At what rate do students pass college mathematics if they placed directly in college mathematics as compared to being placed in and completing developmental mathematics first? (5) How do pass rates compare for developmental and college level students when they enroll in college English or a college social science course? and (6) At what rates are developmental and college level students graduating? Contains 11 references. (GLR)