This guide, which is sent to postsecondary schools, provides them with draft cohort default rates for student loans under the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan Program. The guide is intended to assist schools in understanding how a cohort default rate is calculated, reviewing loan record detail reports, submitting draft data challenges, understanding the replies received in response to a school's draft data challenge, and submitting participation rate index challenges. The guide's six sections address the following topics: (1) cohort default rates (rate types, calculations, time frames, special circumstances); (2) loan record detail report (the importance of reading the LRDR and a detailed explanation of LRDR components); (3) challenging draft data (qualifying, timing, submitting); (4) participation rate index challenges (qualifying, timing, submitting); (5) information for guaranty agencies on draft data challenges (types of allegations, timing, responding); and (6) official cohort default rate overview (consequences associated with the official CDRs, sanctions, and appeals). Five appendices provide information on FFEL program contacts, Direct Loan Program contacts, Department of Education contacts, abbreviations and acronyms, and a form for submitting comments on the guide. (DB)