Thirty options for reducing guaranteed student loan defaults and related federal costs are provided by the General Accounting Office (GAO). The options are presented by groups of program participants: students, schools, lenders, guaranty agencies, and the Department of Education. These options include: adopt GAO's past recommendation to increase the loan interest rate of borrowers who default; adopt GAO's past recommendation to require guaranty agencies to use the National Student Loan Data System to verify borrower eligibility; standardize policies for refunding tuition and fees to students who fail to complete enrollment periods; delay loan disbursements to students and schools for some period after classes begin; require that lenders share the default risk; strengthen enforcement of lender due diligence standards and assess penalties for noncompliance; increase guaranty agencies' default risk or restructure the way in which they share this risk; enforce the provision requiring that all guaranty agencies add reasonable collection costs to defaulters' debts; give the Department of Education stronger program sanctions against lenders and guaranty agencies; and adopt recommendations for continuing the Internal Revenue Service income tax refund offset program for defaulted student loans. (SW)