Raleigh Rampar road bike?

I found a Raleigh Rampar road bike in fairly good condition. It is a ten speed. The only thing wrong with it is if you shift into any gear but the largest (front and rear) the chain hangs real low and slips. My question is is this a problem with the rear derailleur or is the chain simply worn and too long?
Any help is appreciated, thanks.

Thanks do you think ill need a new one or is this fixable?

Wow, that bike is an oldie. You sure it is Raleigh? Rampar was also made by Rand International.

It is the rear derailleur, but you'll probably need a new chain (size 1/2" x 3/32") as well.

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