Low rates of college completion have long been a major deficiency in the performance of American higher education. Over the last decade, the extent and importance of the problem was documented by the National Center for Public Policy and Higher Education in the "Measuring Up" national and state report cards on higher education, and by international comparisons of educational performance. This "Policy Alert" addresses baccalaureate degree completion and the vital role of community colleges as the entry point for many students seeking bachelor's degrees. It focuses particularly on states with rapidly growing young populations, where ethnic groups and low-income students with low rates of college participation and completion are most concentrated. The report notes that community colleges are more crucial than ever, but that state financial aid and transfer policies that enable students to move from two-year colleges to baccalaureate-granting institutions are not keeping pace with current needs. (Contains 4 tables, 2 figures, 10 resources and 11 endnotes.)