This guide is designed to assist schools with their Federal Family Education Loan Program (FFEL) and the William D. Ford Federal Direct Loan (Direct Loan) Program cohort default rate. The guide is a reference tool in understanding cohort default rates and processes. This guide incorporates two former guides, the "Draft Cohort Default Rate Guide" and the "Official Cohort Default Rate Guide," which previously were published separately. It also incorporates new regulations that became effective on July 1, 2001, is redesigned so that future changes can be handled by sending out supplements, and adds strategy and reference sections. Following Part 1, an introduction, Part 2 consists of six chapters. Five cover calculating cohort default rates, their effects, the loan record detail report, changes in status and evasion, and Department offices and addresses. The final chapter contains the tools to assist a school in reading a loan record detail report and detailed repayment information. Part 3, "Strategy," contains three chapters that deal with school cohort default rate strategies, data manager cohort default rate strategies, and various strategy-related tools. Part 4 discusses challenges, adjustments, and appeals in 11 chapters. An appendix contains relevant sections of the "Code of Federal Regulations." (Contains 110 figures.) (SLD)