This report examines high school dropout and college participation rates in Minnesota and their relationship to such socioeconomic factors as race, family income, and parental education. The analysis uses data provided by the Minnesota Department of Education, the Higher Education Coordinating Board, Minnesota Planning, the Census Bureau, and the Minnesota Private College Research Foundation. Findings reveal that: (1) Black and Native American students in secondary public schools are nearly five times as likely as White students to drop out of school; (2) White and Asian students are much more likely to enroll in college than other groups; (3) college attendance is dominated by students from middle-income and upper-income families; (4) participation at Minnesota colleges by low-income and moderate-income families has declined from 1985 to 1992; (5) students with at least one parent who attended college are much more likely to enroll in college themselves; (6) while the White population of youth ages 15 to 19 is expected to increase by only 4 percent between 1990 and 2010, the similarly aged Black population will increase by 160 percent, Hispanics by 98 percent, Asians by 82 percent, and Native Americans by 62 percent; and (7) there is a strong correlation between education and earnings. The report concludes that, to make a college education available to students and families regardless of race and income, Minnesota needs effective and integrated action by public policy, education, community, and business leaders. (Contains 12 references.) (JDD)