The California Guaranteed Student Loan Program is described, and information is provided on the characteristics of student borrowers. Attention is also directed to: the effect of students' total accumulated indebtedness on their education and careers; California's default rates compared with those of other states; differences among institutions in default rates; projected future default rates for California; the relationship of default levels and growth rates to loan volume; information about California institutions, lenders, and students with high default rates; and factors related to defaults in California and other states and at the federal level. After outlining the application, in-school, and repayment periods, incentives for growth of the loan program are discussed. The following student characteristics are examined: school attended; size of loans; loan application and acceptance rates; student load and level; sex, age, and ethnicity; parental income/contributions; applicant income/contribution; and loan amounts and debts. Default prevention strategies are recommended for students, colleges, lenders, California Guarantee Agencies, and the federal government. Appendices include a California Guaranteed Student Loan Program application and information about the 1984 California Student Expenses and Resource Survey. (SW)