Higher education could be one of California's most effective tools for combating economic and social inequities. College graduates experience large wage gains and their jobs offer more benefits than those of workers without bachelor's degrees. College graduates are also relatively insulated from recessions--including the current downturn--and benefit the most from recoveries. However, lower rates of college access and completion among Latinos, African Americans, and low-income Californians exacerbate the state's economic divide and puts California further behind in meeting its workforce needs. And even though a college degree benefits Californians in all racial/ethnic and income groups, these benefits vary by family income and race/ethnicity. In this report, the authors focus on pathways to a bachelor's degree, outlining the economic benefits of completing college, identifying inequitable outcomes, and exploring how inequities can be addressed by the state and its higher education institutions. Policymakers and higher education institutions have many tools to increase access and completion. But at every step in the path from high school to college completion, an emphasis must be placed on ensuring that low-income and underrepresented students have the information, access, and support they need to reach their educational goals. [This report was written with research support from Sergio Sanchez and Cesar Alesi Perez. For the technical appendices, see ED611451.]