A study was conducted to determine the effectiveness of community colleges in aiding those students who transfer to a senior institution, fail academically, return to the community college, and then re-enter the senior institution. The study, involving an examination of student records and a survey, centered on three groups: (1) 137 community college students who had returned to their senior institutions after initial failure; (2) 75 reinstatee students who entered the senior institution as freshmen, dropped out with less than a 2.0 grade point average, and later returned; and (3) 57 other returnees who entered the senior institution as freshmen, left with less than a 2.0 average, attended an institution other than a community college, and later returned to the original senior institution. The study revealed that during their initial period of enrollment at the senior institution, community college transfers who failed to meet academic requirements left the university sooner than the other two groups. During their second period of enrollment at the community college, the transfers exhibited a high degree of motivation and earned higher grade point averages than the other groups. Upon return to the senior institution, community college transfers were more able to cope with academic pressures and achieved a higher degree of success than the other returnees. The study report includes 16 data tables. (JP)