Lately I've noticed that the transmission is holding first gear too long. What can be causing this and how can you fix it?

Transmission fluid change I think? When's the last time you changed it?

Check fluid level and color first.

By all means check the fluid first. But I had the same problem and I ended up putting in new tranny solenoids. That solved the problem. If you decide you need to go that route, come back and ask. There's a lot of useful info, including where to get the replacement solenoids for around $90.

Thank for the advice guys. I checked the fluid level and condition and they looked good, but I did not know when it was last changed. Just to be on the safe side I did a drain and refill of the transmission fluid. Unfortunately the problem is still there.

How does that solenoid thing work? My mechanic told me it's going to be $1400 to rebuild the transmission.

You can a new set of solenoids in this upgrade kit for only $80

31940-80x25

Along with that you'll only need a new AT pan gasket and ~6 quarts of dextron 3 ATF.

Here are some writeups for the easy replacement

NTB98-049d

NTB98-043

valve-body-install

Replacing-tranny-solenoids

For the record, the solenoid fix worked! Thanks guys. My 95 is now over 310,000 miles and feels great.

Congrats on the fix. Those RE4F04A VB solenoids are sure cheap and easy to install!