The Council for the Management of Educational Finance (Council) and the Texas Guaranteed Student Loan Corporation (TG) are pleased to provide this guide, one in a series of default aversion resources available to the higher education community. Originally published in 2000 and revised in 2003, this guide has now been updated to reflect recent technologies, processes, opportunities and challenges facing the loan servicing community. It is the intent of the Council that this guide will serve as a means to build alliances and expand partnerships, which are critical to successful and sustainable default aversion efforts. The combined efforts and partnerships will continue to strengthen the industry and provide the means for student success. Institutions that understand and maximize servicer default aversion practices, activities, and tools will increase the overall success of students' ability to fulfill their loan obligations. Included in this guide is an overview of federal due diligence requirements, activities, techniques, and tools that servicers use for delinquency resolution. This guide highlights practices of the servicing, school, and guaranty agency communities that go above and beyond the required due diligence. (Contains 5 figures, a glossary of terms, and a list of resources.) [This report was written in collaboration with the Council for the Management of Educational Finance.]