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☆ Biden's new student-loan forgiveness plan just began its 30-day public comment period — and anyone can tell the administration what they think of the relief
▼ + stars: | 2024-04-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

It's the next step in implementing a broader version of debt relief for borrowers. Comments can be submitted to the Federal Register here, which the Education Department will then review. While lawsuits have yet to be formally filed against Biden's administration, Missouri's Attorney General Andrew Bailey wrote on X in response to Biden's relief proposals: "See you in court." And some experts said a conservative Supreme Court could likely rule like they did with Biden's first debt relief plan, striking it down. Following the public comment period, the Education Department will review comments and could choose to adjust their proposals based on the feedback they receive.

Persons: —, Joe Biden, Education James Kvaal, Andrew Bailey, Biden's, Cary Coglianese, it's, It's Organizations: Service, Education Department, Federal, Higher, Department, Education, Business, University of Pennsylvania

☆ 277,000 student-loan borrowers who have 'paid what they can afford' for at least a decade are getting $7.4 billion in debt wiped out
▼ + stars: | 2024-04-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden announced another $7.4 billion in student-debt relief for 277,000 borrowers. It impacts borrowers on the SAVE plan, along with others on income-driven repayment plans and PSLF. The new relief comes just after Biden released new details for his broader student-debt relief plan. On Friday, President Joe Biden and the Education Department announced that 277,000 more borrowers will get $7.4 billion in debt relief. Still, the administration is moving forward with more targeted efforts for debt cancellation through its fixes to repayment plans, recently announcing $1.2 billion in relief for 153,000 borrowers through the SAVE plan.

Persons: Biden, —, Joe Biden, Education James Kvaal, Biden's Organizations: Service, Education Department, Public, Education, SAVE, Biden, Higher, GOP, Republican

☆ Student loan borrowers could have up to $20,000 in interest forgiven as early as this fall—here's who qualifies
▼ + stars: | 2024-04-12 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Many student loan borrowers make payments on their loans for years without ever really putting a dent in them, due to interest that has accumulated and continues to grow. In response, President Joe Biden is taking steps to help student loan borrowers curb what his administration calls "runaway interest." As early as this fall, federal student loan borrowers could see excessive interest charges wiped off their debt, according to the Department of Education. The move is part of a broader student debt forgiveness plan that will soon be open for public comment before going into effect. Here's who may be eligible for forgiveness soon.

Persons: Joe Biden, Biden, James Kvaal, Kvaal, Here's Organizations: Department of Education, CNBC

☆ 25 million student loan borrowers could see their balances shrink under Biden’s new forgiveness plan
▼ + stars: | 2024-04-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

President Joe Biden and his administration are moving forward with plans to provide student debt relief to as many people as possible. The administration announced Monday the details of its new plan to reduce student debt balances for millions of borrowers. "[The] plan is focused on the reasons that people are struggling with their student loan debt," James Kvaal, Under Secretary of Education, told CNBC Make It. As with Biden's previous student debt forgiveness proposals, it's possible this plan will come under legal scrutiny if challenged by opponents. Here's the relief borrowers may expect to see in the coming months.

Persons: Joe Biden, James Kvaal, Kvaal Organizations: Education, CNBC, Higher

☆ Student-loan borrowers could see an easier repayment process through Biden's budget request — along with efforts to make college cheaper
▼ + stars: | 2024-03-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It includes a $3.1 billion funding increase for the Education Department to help student-loan borrowers. AdvertisementPresident Joe Biden's budget wish list is out — and it includes boosted funding to help student-loan borrowers as they continue to navigate the return to repayment. Biden's budget request released on Monday outlines what his administration is seeking to prioritize in the final year of his first term. Additionally, the budget request proposes getting rid of student-loan origination fees, or fees a lender charges for processing a borrower's loan. However, many of the initiatives in Biden's budget request would require congressional approval, and with Republicans holding a majority in the House, it's unlikely it would pass in its current form.

Persons: —, Joe Biden's, Education James Kvaal, Pell Grant, Biden Organizations: Education Department, Service, Child, Social Security, Federal, Aid, Federal Student Aid, Education, College Fund, Republicans, Business, Management

☆ 153,000 student-loan borrowers are getting $1.2 billion in debt wiped out — the first group to see relief under a new repayment reform
▼ + stars: | 2024-02-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Thousands of student-loan borrowers just became the first group to see relief under President Joe Biden's new repayment reform. On Wednesday, Biden — along with the Education Department — announced that 153,000 borrowers are getting $1.2 billion in debt cancellation as a result of a new provision in the SAVE income-driven repayment plan. "If you've been paying for a decade, you've done your part, and you deserve relief," Education Secretary Miguel Cardona said in a statement. The Education Department first implemented the SAVE plan over the summer, intended to make borrowers' monthly payments cheaper. Of course, the relief comes as many borrowers are encountering challenges with the return to repayment that began in October.

Persons: Joe Biden's, Biden, —, you've, Miguel Cardona, Biden's, Education James Kvaal Organizations: Wednesday, Education Department —, Education Department, Business, Administration, SAVE, The Education Department, Public, Department, Education

☆ How struggling student-loan borrowers could qualify for debt cancellation under Biden's second attempt at relief
▼ + stars: | 2024-02-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released a proposal for including borrowers with hardship in debt relief. AdvertisementPresident Joe Biden's Education Department unveiled another group of student-loan borrowers it's considering for its second try at debt relief. On Thursday, the Education Department released its proposed text that focused on debt cancellation for borrowers facing financial hardship. Advertisement"College is meant to lead to a better life, but too many students end up struggling due to their student debt," Under Secretary of Education James Kvaal said in a statement. The Education Department emphasized in its press release that it "may consider these and other factors to determine whether borrowers are experiencing the type of hardship that would qualify for debt relief."

Persons: —, Joe Biden's, Biden's, Education James Kvaal, Kvaal, Harris, Pell Grant Organizations: Education Department, Service, Joe Biden's Education Department, Higher, Democratic, Education, Biden, Federal

☆ Biden student loan forgiveness plan: Administration reveals who may qualify
▼ + stars: | 2024-02-15 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

President Joe Biden speaks about his economic plan at the Flex LTD manufacturing plant on July 6, 2023 in West Columbia, South Carolina. The Biden administration has released its proposal for which struggling borrowers should qualify for its new student loan forgiveness plan. At one point, it seemed possible that the "financial hardship" category had been dropped from what has become known as Biden's Plan B for student loan forgiveness. While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process. Over three rulemaking sessions, the negotiators tasked with determining who will be eligible for the president's revised relief plan identified several categories that could signal hardship.

Persons: Joe Biden, Biden, Joe Biden's, Biden's, James Kvaal, Pell Grant, didn't Organizations: Flex, U.S . Department of Education, Finance, Department of Education, Education Department Locations: West Columbia, South Carolina

☆ A new type of student-loan forgiveness is coming this month
▼ + stars: | 2024-02-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewMore student-loan borrowers can expect debt relief starting this month through a new repayment reform. AdvertisementIt's unclear how many borrowers will immediately qualify for relief, and when those notices will start being sent out this month. Additionally, borrowers who are not currently enrolled in the SAVE plan will need to enroll at studentaid.gov in order to qualify for this benefit. For other borrowers, SAVE will calculate the most affordable payment based on income. "We look forward to discussing another avenue for borrower relief related to hardship at our next negotiation session," Kvaal said.

Persons: —, Education James Kvaal, Biden, Biden's, Kvaal Organizations: Service, Education Department, Business, Education, SAVE, Public, Democratic, Higher Locations: South Carolina

☆ Why college applicants will have to wait months longer to find out how much financial aid they're getting this year
▼ + stars: | 2024-02-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The latest delay means financial aid awards might not come until April. AdvertisementThe sole application for receiving college financial aid has had a rocky rollout this year — and it means reward letters will be delayed by months. AdvertisementThe latest delay in receiving financial aid awards can be attributed to the department's efforts to update FAFSA qualifications to expand families' financial aid eligibility. However, that'll take time — and could leave some families in a time crunch when it comes to evaluating their financial aid packages. "Updating our calculations will help students qualify for as much financial aid as possible."

Persons: —, That's, they'll, that'll, Education James Kvaal, Justin Draeger, Draeger, Virginia Foxx, Burgess Owens, Secretary Miguel Cardona, Sen, Bill Cassidy, Biden, Cassidy, Foxx, Richard Cordray Organizations: Education Department, Service, Federal Student Aid, Education, U.S . Department of Education, National Association of Student Financial, Republican, Secretary, Department, Office, Aid

☆ The Education Department agrees to consider more student-loan borrowers for its second attempt at debt relief
▼ + stars: | 2024-01-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Education Department agreed to add an additional negotiation session for student-debt relief. AdvertisementFollowing mounting pressure from Democratic lawmakers and advocates, the Education Department said it would allow another opportunity to expand its second student-debt relief plan. On Wednesday, the Education Department announced it will hold a fourth negotiation session on February 22 and 23 to discuss including borrowers with financial hardship in its second attempt at student-debt cancellation. The Education Department agreed to that request. "We look forward to discussing another avenue for borrower relief related to hardship at our next negotiation session," Kvaal said.

Persons: —, Joe Biden's, Education James Kvaal, Harris, Kvaal Organizations: Education Department, Service, Democratic, Higher, Education, Biden, Harris Administration, Federal

☆ Student-loan forgiveness is coming early for some borrowers. Here's what you need to do to qualify.
▼ + stars: | 2024-01-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

This benefit will be put into effect ahead of schedule — all provisions of the SAVE plan were set to be implemented by July 1, 2024. Which borrowers qualify for early relief? Borrowers must first be enrolled in the SAVE plan to qualify for this early relief, which they can do at studentaid.gov. Borrowers who automatically qualify for the shortened timeline for relief will begin seeing their balances wiped out in February. The department said it will continue to identify borrowers who qualify for relief on "a regular basis," per the press release.

Persons: —, Joe Biden's, Education James Kvaal Organizations: Service, Business, Joe Biden's Education Department, Education, SAVE, Education Department

☆ The new FAFSA rolls out soon—and 1.5 million more students will have maximum Pell Grant eligibility
▼ + stars: | 2023-11-15 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

College students and their families will see a newly redesigned Free Application for Federal Student Aid when they apply for financial aid in the coming months. The updated FAFSA — which is slated to be available by the end of December — will not only streamline the process and make it easier for families to apply for aid, but also expand eligibility for federal aid, including Pell Grants. Under the changes, 610,00 more students nationwide will become eligible for Pell Grants and nearly 1.5 million more students will receive maximum Pell Grant eligibility, the Department of Education said in a press release on Wednesday. The maximum Pell Grant award was $7,395 for the 2023-24 aid year. "More students are going to get Pell Grants, they're going to get larger Pell Grants, and it's going to be easier to navigate the financial aid system as a whole," James Kvaal, Under Secretary of Education, tells CNBC Make It.

Persons: Pell, Grant, Pell Grant, James Kvaal Organizations: Federal Student Aid, Pell Grants, Department of Education, CNBC

☆ 2.9 million student-loan borrowers are making $0 monthly payments through a new program Republicans are trying to repeal
▼ + stars: | 2023-11-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released data showing 5.5 million borrowers have enrolled in the new SAVE plan. Of those borrowers, 2.9 million of them are making $0 monthly payments. AdvertisementAdvertisementMillions of student-loan borrowers are not paying anything toward their balances right now thanks to President Joe Biden's new repayment plan — but Republicans and one Democrat are seeking to block it. On Wednesday, the Education Department announced that 5.5 million student-loan borrowers are now enrolled in the new SAVE income-driven repayment plan intended to lower monthly payments to borrowers. The latest SAVE data from the Education Department comes just over a month after federal student-loan payments resumed following an over three-year pause.

Persons: Joe Manchin, —, Joe Biden's, Education James Kvaal, Pell Grant, Democratic Sen, Bill Cassidy, John Thune, John Cornyn, Biden, servicers Organizations: Education Department, Republican, Service, Education, SAVE, Democratic, GOP, Federal Student Aid, Federal Locations: Sens, Biden's

☆ 3,500 student-loan borrowers got $109 million in debt wiped out after being 'cheated' by their schools. Top Democrats want relief for taxpayers, too.
▼ + stars: | 2023-11-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some Democrats want the Education Department to recoup funds from Ashford and University of Phoenix. The department previously accused those schools of fraud, granting thousands of borrowers debt relief. The lawmakers want the schools to pay up so taxpayers don't foot the bill for the relief. The Democrats referenced two recent actions to provide relief for borrowers who went to for-profit schools accused of predatory behavior: $72 million in relief for 2,300 borrowers "cheated" by Ashford University, and $37 million in relief for 1,200 borrowers "deceived" by the University of Phoenix, according to the Education Department. AdvertisementAdvertisement"This would send a strong warning signal to other predatory for-profit colleges that there are substantial financial consequences for defrauding students," the Democrats wrote.

Persons: —, Joe Biden, Sen, Dick Durbin, Rosa DeLauro, — Sen, Elizabeth Warren —, Secretary Miguel Cardona, ike, hoenix, J ames Organizations: Education Department, Ashford and University of Phoenix, Service, Secretary, Ashford University, University of Phoenix Locations: Ashford, Phoenix

☆ Student-loan borrowers could take legal action against their servicers or the Biden administration if repayment mistakes aren't fully fixed, a new federal memo says
▼ + stars: | 2023-11-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released a memo detailing mistakes it found student-loan servicers are making with repayment. It pushed for the mistakes to be remedied for borrowers to avoid legal action. AdvertisementAdvertisementPresident Joe Biden's Education Department is concerned student-loan borrowers could turn to legal action if issues with their accounts aren't fully resolved. The Education Department said it will continue enforcing oversight over servicers to ensure borrowers are not further harmed by mistakes to no fault of their own. "We are committed to making things right for borrowers and holding our contractors accountable for errors when they do occur."

Persons: MOHELA, —, Joe Biden's, Education James Kvaal, servicers, I've, it's, Richard Cordray Organizations: Education Department, Service, Joe Biden's Education Department, Wednesday, Federal Student Aid, Education, MOHELA, Department, The Education Department Locations: forbearance

☆ Biden's Education Department reveals the 4 groups of student-loan borrowers it's prioritizing for its second attempt at debt relief
▼ + stars: | 2023-10-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released the draft text of its second attempt at student-debt relief. AdvertisementAdvertisementPresident Joe Biden's Education Department just released the latest details on its second attempt at student-loan forgiveness. On Monday, the department released the draft text of its proposal to cancel student debt for federal borrowers using the Higher Education Act of 1965. The high court ruled Biden did not have the authority to cancel student debt broadly using that law. AdvertisementAdvertisementA senior department official also told reporters that the amount of student debt canceled could vary by each group.

Persons: —, Joe Biden's, Biden, Harris, Miguel Cardona, Education James Kvaal, Tamy Abernathy, it's, Ashley Pizzuti Organizations: Education Department, Service, Joe Biden's Education Department, Higher, Education

☆ New rules prevent colleges from leaving student-loan borrowers with 'shoddy educations' and lots of debt, Biden's Education Department says
▼ + stars: | 2023-10-24 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released new rules to protect student-loan borrowers from unaffordable debt. They also require colleges to be upfront with a student on the amount of debt they'll take on for a program. AdvertisementAdvertisementPresident Joe Biden's Education Department finalized rules to hold colleges accountable for loading student-loan borrowers up with unaffordable debt. On Tuesday, the Education Department released its final regulations to strengthen oversight over colleges and enhance protections for student-loan borrowers. "They will help prevent fly-by-night colleges from leaving students and taxpayers holding the bag for shoddy educations," he continued.

Persons: —, Joe Biden's, Education James Kvaal, they're, Kelly McManus, Barack Obama's, Donald Trump, Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education, Education, Arnold Ventures

☆ Student loan borrowers hit snags as payments resume: 'It's a challenging environment,' head of loan servicer group says
▼ + stars: | 2023-10-13 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

"These student loan borrowers had the reasonable expectation and belief that they would not have to make additional payments on their federal student loans," said Education Department Undersecretary James Kvaal said in a court filing last year. Former President Donald Trump first announced the stay on federal student loan bills and the accrual of interest in March 2020, when the coronavirus pandemic hit the U.S. and crippled the economy. New SAVE payment plan leads to billing errorsTo ease the transition for borrowers, the Biden administration worked quickly to implement a new payment plan option, which it describes as the "most affordable repayment plan ever." Yet many borrowers who've signed up for the Saving on a Valuable Education, or SAVE, plan, complain they've gotten incorrect bills. According to Kantrowitz, student loan servicers seem, in some cases, to be using the 2022 poverty line to calculate borrowers' payments instead of the current 2023 figure.

Persons: Joe Biden's, James Kvaal, Kvaal, Donald Trump, Biden, who've, they've, Mark Kantrowitz, he's, Kantrowitz, servicers, Ella Azoulay, Buchanan Organizations: Creatas, Getty, U.S . Department, Valuable Education, U.S . Department of Education Locations: U.S

☆ A millennial paid off his $18,000 student debt load. 4 months later, the payment still hasn't processed and his balance is even bigger.
▼ + stars: | 2023-10-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Xiong Chang made an $18,000 payment on his remaining student-loan balance in June. But it hasn't been processed yet, and his balance has grown due to interest. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. But it's been over four months since he made that payment, and it still is not reflected in his account. According to his account, his balance now stands at $19,019.44 — with $96 in accrued interest.

Persons: Xiong Chang, He's, —, it's, Xiong, Joe Biden's, Education James Kvaal, I've, MOHELA Organizations: Service, Education, Consumer Financial, Education Department, Federal Student Aid, Republicans

☆ The student-loan payment restart is about to put pressure on an already-fragile economy
▼ + stars: | 2023-10-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The resumption of student-loan payments is expected to add further strain. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementThe US economy has thrived over the past three years, since the initial shock of COVID-19 gave way to a rapid recovery. Here's what banks and economists are saying about the impact of the student-loan payment resumption on the economy. AdvertisementAdvertisementWhat will happen to the economy with the student-loan payment restartIt's difficult to predict how exactly the economy will respond to a surge of borrowers facing student-loan payments again — and it depends on a number of factors.

Persons: —, Marshall Steinbaum —, University of Utah —, Jerome Powell, Wells Fargo, Goldman Sachs, Jeff Gennette, Michael Fiddelke, Jefferies, Education James Kvaal Organizations: Service, Family Institute, University of Utah, Education Department, Federal, United Auto Workers, Bank of America, Education Locations: Helena

☆ Student-loan borrowers are facing 'excessively long' wait times for help from their servicers, Biden's Education Secretary says — and it'll take more money from Congress to fix it
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan borrowers started to face monthly bills again this week. Miguel Cardona told Insider he's aware of the challenges with repayment. October 1 marked the official end of pandemic relief for federal student-loan borrowers. Education Secretary Miguel Cardona told Insider in an interview that he's aware of the challenges this transition is bringing to both borrowers and servicers. AdvertisementAdvertisementStill, some student-loan servicers continue to point to lack of resources when faced with customer service complaints.

Persons: Miguel Cardona, —, we're, Cardona, Joe Biden's, Education James Kvaal, he's, Kvaal, Massachusetts Sen, Elizabeth Warren, Warren, servicers, MOHELA Organizations: Service, Bills, Education Department, Education, Federal Student Aid, Republicans Locations: Massachusetts

☆ Biden cancels $9 billion in student debt for 125,000 borrowers
▼ + stars: | 2023-10-04 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

President Joe Biden announced Wednesday that he approved $9 billion in student loan forgiveness for 125,000 Americans. "Biden has forgiven more student loan debt than any previous president," said higher education expert Mark Kantrowitz. Federal student loan payments resumed Oct. 1 after being on pause for more than three years. Before the Supreme Court verdict, Education Department Undersecretary James Kvaal had warned that if the administration was unable to deliver on Biden's sweeping student loan forgiveness plan, delinquency and default rates could skyrocket. More recently, the Consumer Financial Protection Bureau estimated that 1 in 5 student loan borrowers could struggle with the resumption of payments.

Persons: who've, Joe Biden, Biden, Mark Kantrowitz, Taylor Swift, he'd, Astra Taylor, Taylor, James Kvaal Organizations: Public, Finance, Biden, Department, Education, Federal, Consumer Financial, Bureau

☆ 125,000 student-loan borrowers are getting $9 billion in debt wiped out through a series of Biden's repayment reforms
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $9 billion in student-debt relief for 125,000 borrowers. It impacts borrowers in public service, on income-driven plans, and those with total and permanent disabilities. AdvertisementAdvertisementPresident Joe Biden's Education Department just announced its latest batch of student-debt relief for targeted groups of borrowers. On Wednesday, the department announced that it has approved $9 billion in debt cancellation for 125,000 borrowers. That included a one-time account adjustment for borrowers on income-driven repayment plans and PSLF — most recently, the department announced it had approved relief for 804,000 borrowers on income-driven repayment.

Persons: —, Joe Biden's, Biden, Miguel Cardona, Harris, It's, they're, Education James Kvaal, he's Organizations: Education Department, Service, Joe Biden's Education Department, Public, Social Security Administration, Biden, Education

☆ A top education official breaks down what's next for student-loan borrowers, and how the industry's 'deep-rooted structural problems' can be fixed
▼ + stars: | 2023-10-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

James Kvaal knew the student-loan industry had problems when he started as Under Secretary of Education. Lack of funding for Federal Student Aid is also concerning for repayment, Kvaal said. AdvertisementAdvertisementA top official in the US Department of Education knew the student-loan industry was broken when he started the job. At that point, Americans were in the midst of the pandemic, and as a result, student-loan borrowers had not been required to pay their bills since March 2020. Kvaal pointed to limited resources the Education Department has to give to federal student-loan servicers, which he said has contributed to mismanagement over the years.

Persons: James Kvaal, Kvaal, —, Education James Kvaal, Joe Biden's, servicers, we've, Massachusetts Sen, Elizabeth Warren, Warren, It's, What's, rulemaking Organizations: Education, Federal Student, Service, US Department of Education, Public, Education Department, Massachusetts, Democratic, Aid, —, Republicans, Higher, Federal

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