The characteristics of student loan borrowers and differences between those who repay their loans and those who default are examined. Data are based on the New York State Higher Education Services Corporation Guaranteed Student Loan database and responses to a questionnaire mailed in spring 1984 to a sample of New York State student loan borrowers. The study population consists of 175,204 borrowers who graduated or left school during fiscal year 1982 and who were due to enter repayment in 1983. Six percent of the sample were in repayment and 11 percent in default. Findings include: there was a strong relationship between default and the number of years spent in school; there was a strong inverse relationship between default and the level of school attended; the graduation rate for repayers was only slightly higher than for defaulters; borrowers who were employed when their loans became due were more likely to begin repayment; students who worked while in school were more likely to repay than nonworking students; repayers were three times as likely to receive family assistance in repaying loans. Eight recommendations are offered, including: extending deferments during periods of unemployment; discouraging students from excessive borrowing; and graduated repayment plans. The survey letter and questionnaire are appended. (SW)