Guidance Counselors were the "winners" of the BackHalls, who had slain every one of its biggest monsters, and gained nearly unstoppable power. They used this power to find lost and true souls in the halls that deserved a chance to escape.
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Most guidance counselors lived inside The City, but at least one rogue Guidance Counselor is known to have abandoned the city, instead choosing to find room #1 and locking it up as his own personal purgatory.