A previous report, which evaluated the economic success of welfare recipients who graduated from Eastern Washington University (EWU), suggested that a college degree led to successful economic performance for welfare recipients. This study focuses on changes in the numbers of welfare students and their subsequent economic performance after the passage of welfare reform. Subjects were all students at EWU from fall 1994 to fall 1998 who identified Temporary Assistance to Needy Families as a source of income. The introduction of welfare reform in Washington State seems to have created disincentives for attending college and seems to be a major factor in the declining number of welfare students attending EWU. This report makes some basic recommendations to retain college as a feasible means for welfare recipients to achieve economic independence: (1) provide child care and other appropriate services; (2) allow welfare recipients to participate in college programs as a category of work activity; (3) include hours of education, work study, and unpaid internships in the work requirement; and (4) make accommodations to extend support beyond the time limits to welfare recipients who are making progress in a degree program. Higher education remains the best strategy for achieving economic independence. (SLD)