Technical assistance provided to loan guarantee agencies by Touche Ross and Co. under contract to the U.S. Office of Education (OE) is described. Objectives of the report are: to summarize the work performed and the results of each of the projects that were conducted; to describe certain prototype systems that were developed for the guarantee agencies; and to present recommendations to further improve program performance. Touche Ross and Co.'s services were sought to help OE meet the requirements of Section 421(c) of the 1976 Amendments to the Higher Education Act. Phase One, data collection and analysis at each existing guarantee agency, was conducted in 1977-78. The company accomplished 32 projects for 29 recipients in Phase Two. These recipients included state guarantee agencies, nonprofit corporations, state organizations, and the United Student Aid Funds. Technical assistance included: development of an accounting system; development of EDP systems user requirements and other EDP planning assistance; operations reviews; preparation of the policies and procedures for lender and school compliance programs; assistance in evaluating alternative approaches for nonagency states; and assistance in developing the plans for implementing a guarantee agency. Summaries of major technical assistance projects for 19 states are appended. (SW)