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☆ 3 top Democratic lawmakers are calling for an investigation into a major student-loan company, accusing it of 'loan forgiveness mismanagement' for millions of borrowers
▼ + stars: | 2024-02-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewThree top Democratic lawmakers want federal and state officials to investigate a major student-loan company. AdvertisementThey called on the CFPB and attorneys general to "investigate MOHELA and pursue action to the fullest extent possible under the law. We’re standing with @theSBPC and @AFTunion in expressing outrage at MOHELA’s student loan mismanagement. Since student-loan payments resumed in October after an over three-year pause, federal servicers have been under scrutiny over their handling of the return to repayment. AdvertisementIn January, the Education Department withheld varying amounts of pay from the other three federal servicers for the same reason.

Persons: —, Chuck Schumer, Elizabeth Warren, Bernie Sanders, MOHELA, they're, Biden, — Chuck Schumer, Warren Organizations: Service, Democratic, Consumer Financial Protection Bureau, Business, Protection, American Federation of Teachers, Sunshine Law, AGs, Education Department Locations: Sens, Missouri

☆ After student loan forgiveness, the Education Dept. is sending some borrowers refunds. What to know
▼ + stars: | 2024-02-22 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

So far, almost 3.9 million borrowers have gotten their education debt erased, totaling $138 billion in relief . Under the U.S. Department of Education's income-driven repayment plans, student loan borrowers are entitled to get any of their remaining debt forgiven after 20 or 25 years. The companies earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities. "Loan servicers were not tracking the number of qualifying payments, and the automatic forgiveness was not occurring," Kantrowitz said. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, denied that the companies benefit by veering from the government's orders.

Persons: Joe Biden, Culver City Julian, Mark Kantrowitz, servicers, Nadine Chabrier, Kantrowitz, he'd, Scott Buchanan, Buchanan, Biden, who've, Persis Yu Organizations: Culver City, Culver City Julian Dixon Library, Education Department, U.S . Department of Education, U.S . Department, Center for, Lending, The Education, Finance, IRS, Student Loan, Alliance, Student, Protection Locations: Culver City , California, U.S

☆ Thousands of student-loan borrowers are set to get emails from Biden that their balances are wiped out. Here's what happens next.
▼ + stars: | 2024-02-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Student-loan borrowers, check your emails — you might find a message from President Joe Biden in your inbox telling you that your debt is canceled. Additionally, per the fact sheet, 7.5 million borrowers are enrolled in the SAVE plan, and 4.3 million of them have a $0 monthly payment. Here's what will happen next for borrowers who are, or hope to be, eligible for SAVE plan relief. Next steps for SAVE plan debt reliefBiden's email noted that the Education Department has already informed impacted borrowers' loan servicers that they are eligible for relief. Once negotiations conclude, the department will prepare proposed text on the borrowers it's seeking to include in this new relief plan.

Persons: —, Joe Biden, Biden, I've, they've, forbearance Organizations: Service, White House and Education Department, Business, Education Department, SAVE, Public, Family Education Locations: noreply@studentaid.gov

☆ 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

☆ These borrowers are likely to be eligible for Biden's new student loan forgiveness plan
▼ + stars: | 2024-02-20 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Sean Rayford | Getty ImagesSince the Biden administration's first student loan forgiveness plan was rejected at the Supreme Court, it has been working on creating a new, legally viable relief package. The alternative plan, which has become known as Biden's "Plan B," could forgive the student debt for as many as 10 million people, according to one estimate. While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process. Borrowers in repayment for 20 years or moreThose who have been carrying their student debt for decades may also benefit. watch nowStudent loan servicers also earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities.

Persons: Joe Biden, Sean Rayford, Biden, Persis Yu, George W, Bush, servicers, Yu Organizations: Flex, Biden administration's, Supreme, U.S . Department of Education, Student, Protection, Education Department, Public, Consumer Financial, Bureau Locations: West Columbia, South Carolina

Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). I always start tax prep at the end of December, but doing so felt especially important this year. Finally, I send tax forms to the people whom I subcontracted with. I like the idea that he’s spending a bit more time on my taxes during the quiet start to tax season. Starting my taxes early lets me plan and feel in control, which reduces my stress about my tax bill.

Persons: —, Uncle Sam, I’ve, He’s Organizations: Service, Disney

☆ After 35 years, he got $119,500 in student debt forgiven. Then the government refunded him $56,801
▼ + stars: | 2024-02-16 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

Under the U.S. Department of Education's income-driven repayment plans, student loan borrowers are entitled to get any of their remaining debt forgiven after 20 years or 25 years. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, refuted that the companies benefit by veering from the government's orders. Shortly after Fox heard that his student loans were forgiven, he received a payment from the government for $56,801. When he told people he was still paying off his student debt, they scratched their heads. Over the decades, based on Fox's records which CNBC reviewed, he paid around $200,000 to his federal student loans.

Persons: Marlon, George, servicers, Nadine Chabrier, Fox, he'd, Scott Buchanan, Buchanan, I've, Marlon Fox, overpayments, Biden, Debbie Organizations: Biden, U.S . Department, Center for, Lending, The Education, Student Loan, Alliance, Palmer College of Chiropractic, CNBC Locations: forbearances

☆ Some student-loan borrowers have just 2 months left to benefit from temporary debt relief. Here's what they need to do.
▼ + stars: | 2024-02-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Time is running out for some student-loan borrowers to benefit from a limited-time debt cancellation reform. AdvertisementBorrowers who will receive the account adjustment automatically must be in the federal direct loan program or the Federal Family Education Loan program with loans held by the Education Department. Other borrowers who have loans in the FFEL program that are commercially held would need to consolidate into the direct loan program to receive relief. AdvertisementAt the same time, the Education Department is in the process of crafting its second attempt at more expansive relief for borrowers. On February 22 and 23, it will meet with stakeholders for the fourth time to negotiate the text of debt relief under the Higher Education Act of 1965.

Persons: Joe Biden's, Biden, Biden's Organizations: Service, Joe Biden's Education Department, Public, Business, Aid, Family Education, Education Department, Higher

☆ Biden has forgiven $136 billion in student debt. More relief is on the way
▼ + stars: | 2024-02-12 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Andrew Caballero-Reynolds | AFP | Getty ImagesIt's never been a better time to get rid of your student debt. Paul Morigi | Getty ImagesThe Biden administration has tried to reverse the trend of borrowers being excluded from the relief on technicalities. Some 790,000 public servants have gotten their debt erased as a result, amounting to more than $56 billion in relief. Total and Permanent Disability DischargeThe Biden administration has also forgiven the student debt of more than 510,000 disabled borrowers. Borrower defenseAnother 1.3 million borrowers have walked away from their debt over the past few years thanks to the Borrower Defense Loan Discharge.

Persons: Joe Biden, Andrew Caballero, Reynolds, Joe Biden's, James Clyburn, he's, George W, Bush, Paul Morigi, Biden, Kantrowitz Organizations: Air Force, Joint Base Andrews, AFP, Getty, Supreme, CNBC, U.S . Department of Education, Public, Consumer Financial, Studentaid.gov, of Education, Social Security Administration, Department of Veterans Affairs, Education Department Locations: Maryland

☆ Student-loan borrowers who have faced repayment errors should get a 'personalized' explanation on how their account is being corrected — but it'll take time, the Education Department says
▼ + stars: | 2024-02-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers have encountered a range of repayment issues, and any mistakes in their accounts will be fixed — but it'll take some time. The Education Department posted guidance for borrowers on what to expect if they found mistakes in their accounts. "It might take several weeks for your loan servicer to send this communication and to make corrections to your account," the guidance said. "You might receive an updated billing statement before you receive the above communication about corrections. According to a notice reviewed by BI in November, student-loan company MOHELA told some borrowers that it was "in the process of updating your account.

Persons: servicers, MOHELA Organizations: The Education Department, Public, BI, Federal, Department

☆ 2.7 million student-loan borrowers' accounts will be switched to a company that the Education Department previously punished for poor customer service
▼ + stars: | 2024-02-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

On Tuesday, Navient announced plans to outsource servicing of its private student-loan portfolio and commercially held loans in the Federal Family Education Loan program to MOHELA, one of the largest federal student-loan servicers. AdvertisementA Navient spokesperson told Insider this change will impact 2.7 million student-loan borrowers with loans currently owned and serviced by Navient. Outsourcing servicing responsibility to MOHELA could spark concern for some borrowers, given how the company has fared since federal student-loan payments resumed in the fall. In January, the department withheld varying amounts of pay from the remaining federal servicers for the same reason. It's unclear how soon Navient borrowers will begin communications with MOHELA.

Persons: —, Navient, David Yowan, MOHELA, Elizabeth Warren, John Remondi, Warren Organizations: Service, Family Education, Business, Navient, Outsourcing, Education Department, Democratic, MOHELA Locations: Sen

☆ All 4 major student-loan companies have now gotten punished for customer service issues as borrowers struggle with repayment — and it might not be the end
▼ + stars: | 2024-01-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Read previewIt hasn't been easy for student-loan borrowers since payments restarted a few months ago — and for the companies that manage their debt. The Education Department is aware of those errors and highlighted them in an internal Federal Student Aid memo in November. AdvertisementIn the past fiscal year, Congress did not boost funding for Federal Student Aid, which oversees all student-loan operations. And in the current round of budget negotiations, House Republicans have proposed steep cuts for Federal Student Aid. One servicer, MOHELA, told Democratic lawmakers in response to queries on repayment preparation that "millions of borrowers resumed repayment simultaneously after a multi-year pause."

Persons: —, Joe Biden's, MOHELA, servicers, Miguel Cardona, that's, servicer, I'm, Harris, Cardona Organizations: Service, Business, Joe Biden's Education Department, Education Department, Department, Education, Federal, Aid, The Education, Federal Student Aid, House Republicans, Democratic, Biden, Harris Administration

☆ Biden administration to forgive $4.9 billion in student debt for 73,600 borrowers
▼ + stars: | 2024-01-19 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The Biden administration announced on Friday that it would forgive $4.9 billion in student debt for 73,600 borrowers. The relief is a result of the U.S. Department of Education's fixes to its income-driven repayment plans and Public Service Loan Forgiveness Program. "The Biden-Harris Administration has worked relentlessly to fix our country's broken student loan system and address the needless hurdles and administrative inaccuracies that, in the past, kept borrowers from getting the student debt forgiveness they deserved," U.S. Secretary of Education Miguel Cardona said in a statement. In addition, 43,900 borrowers who have worked in public service for a decade or more will receive $3.2 billion in loan cancellation, the U.S. Department of Education said. Borrowers in the Public Service Loan Forgiveness program have also struggled to get the debt erasure they've been promised due to errors in their payment counts and other issues.

Persons: Joe Biden, Biden, Harris, Education Miguel Cardona, servicers Organizations: Community Center, U.S . Department, Public, Biden, Harris Administration, Education, Finance, U.S . Department of Education Locations: Raleigh , North Carolina

☆ 74,000 student-loan borrowers are getting $5 billion debt wiped out in Biden's latest batch of repayment reforms
▼ + stars: | 2024-01-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The relief is going to public servants and those on income-driven repayment who made their qualifying payments. AdvertisementMore student-loan borrowers are on track to get debt relief following President Joe Biden's repayment reforms. On Friday, Biden announced that his administration approved another 74,000 borrowers for $5 billion in debt relief. In December, for example, the department approved another $5 billion in relief for 80,000 borrowers on PSLF and income-driven repayment plans. Advertisement"This level of debt relief is unparalleled, and we have no intention of slowing down," Education Secretary Miguel Cardona said in a December statement.

Persons: —, Joe Biden's, Biden, servicers, Biden's, Miguel Cardona Organizations: Service, Public, Department, Education Department Locations: forbearance

☆ Federal agency: Student loan company errors could 'pose serious risks' to borrowers, the economy
▼ + stars: | 2024-01-05 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Rohit Chopra, director of the Consumer Financial Protection Bureau, speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., Dec. 15, 2022. When student loan servicers make errors by cutting corners or sidestepping the law, it can "pose serious risks to individuals and the economy," said Consumer Financial Protection Bureau Director Rohit Chopra. Borrowers experienced long phone hold times with their servicers, significant delays in the processing of their repayment applications, and inaccurate and untimely billing statements, the bureau found. The U.S. Department of Education announced Friday that it would withhold payments to three student loan servicers as part of its efforts to hold the companies accountable. "Today's actions make clear that the Biden-Harris Administration will not give student loan servicers a free pass for poor performance and missteps that jeopardize borrowers," Secretary of Education Miguel Cardona said in a statement.

Persons: Rohit Chopra, servicers, Mark Kantrowitz, Harris, Education Miguel Cardona Organizations: Consumer Financial Protection Bureau, Banking, Housing, Urban Affairs Committee, Washington , D.C, Financial, U.S . Department of Education, Finance, Biden, Harris Administration, Education Locations: Washington ,, EdFinancial, Nelnet

☆ Student-loan borrowers are facing 'serious risks' to their credit scores following the 'chaotic' payment resumption, 4 Democratic lawmakers say
▼ + stars: | 2023-12-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Four Democrats recently wrote a letter that raised concerns about student-loan repayment challenges. They said they're worried servicer errors could hurt borrowers' credit scores. AdvertisementIt's been just over two months since federal student-loan payments resumed and millions of borrowers have already faced a range of difficulties with the transition. Elizabeth Warren, Bernie Sanders, Richard Blumenthal, and Chris Van Hollen sent a letter to Education Secretary Miguel Cardona expressing concerns about challenges student-loan borrowers have faced over the past few months. "For example, we are concerned that ED's credit reporting processes may expose borrowers' credit scores to unanticipated consequences," the letter said.

Persons: they're, —, It's, Elizabeth Warren, Bernie Sanders, Richard Blumenthal, Chris Van Hollen, Secretary Miguel Cardona, it's Organizations: Education Department, Service, Democratic, Secretary, Department, Democrats, Federal Student Aid, House Republicans Locations: Sens

☆ Student loan borrowers should be aware of debt relief scams
▼ + stars: | 2023-11-29 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

It has been a frustrating and confusing time for many student loan borrowers. As payments restarted in October after a three-year break, borrowers were often given confusing or insufficient information on their accounts. "When borrowers have difficulty reaching their loan servicers or are disappointed by the lack of loan forgiveness, they look elsewhere for help," said higher education expert Mark Kantrowitz. "Student loan scams fill the gap." At StudentAid.gov/repay, you can apply for different repayment plans, forgiveness programs and payment pause options for free.

Persons: Joe Biden, Mark Kantrowitz, Ari Lazarus, —, Kantrowitz Organizations: Finance, Federal Trade Commission, StudentAid.gov Locations: StudentAid.gov

☆ 813,000 student-loan borrowers are now getting emails that their loans are wiped out following Biden's recent reforms
▼ + stars: | 2023-11-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The White House said 813,000 student-loan borrowers are getting emails their loans have been wiped out. It's a result of account adjustments to ensure all borrowers' payments are accounted for. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementCheck your email: thousands more student-loan borrowers are starting to receive notices that their balances have been reduced to zero. Over the past few months, a growing number of borrowers have been receiving debt relief through the Education Department's adjustments to borrowers' accounts.

Persons: —, Joe Biden, Biden, Biden's, George Tucker, isn't Organizations: House, Service, White House, White, Public, Education Department

☆ Now that federal student loan payments have resumed, here's what to consider before refinancing
▼ + stars: | 2023-11-27 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

But converting federal student loans into private debt can lead to the loss of a number of consumer protections, experts warn. Federal loans have more safeguardsThe most important thing to keep in mind when considering refinancing your federal student loans is that, should you move forward, your debt will be transferred to a private company, and become a private student loan. "Private student loans don't have the same benefits as federal student loans," Kantrowitz said. While federal student loan rates reset annually for new loans, they're fixed once disbursed. Federal student loan borrowers don't need to refinance to get a slightly better rate, Kantrowitz pointed out: Most student loan servicers will offer a 0.25% interest rate deduction when you sign up for automatic payments.

Persons: haven't, Mark Kantrowitz, Kantrowitz, Scott Buchanan, Buchanan, Betsy Mayotte, I've, servicers Organizations: Student Loan, Alliance, Finance, cryptocurrency, U.S . Department of Education, Federal Reserve, The, Student Loan Advisors, Federal Locations: U.S, Mayotte

VA loan borrowers were given the option to put their mortgages in forbearance, meaning they could temporarily pause their mortgage payments. So on November 17, the VA announced a stopgap for distressed VA borrowers. Advertisement"This is good news for VA borrowers, especially those who may be struggling with their mortgage payments," says Christy Bunce, president of New American Funding. How to take advantage of the Refund Modification programDuring the pause, the VA is also offering its Refund Modification program. The VA says that borrowers struggling to make mortgage payments should visit the VA Housing Assistance website or call 877-827-3702 for help.

Persons: servicers, —, who's, it's, Christy Bunce, Bunce Organizations: Service, Department of Veterans Affairs, NPR, Veterans, New Locations: forbearance

☆ Meet a repairman with $37,000 in student debt who's struggling to pay it off and handle medical bills. He's pleading to be included in Biden's new relief plan.
▼ + stars: | 2023-11-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Chris Fleshren, 63, is struggling to afford student-loan payments on top of hefty medical bills. AdvertisementChris Fleshren is just a few years away from retirement, and he's sick of dealing with the "bureaucratic" student-loan industry. Chris FleshrenMillions of borrowers are now dealing with a monthly bill they haven't paid in over three years due to the pandemic pause on student-loan payments. However, that relief isn't enough for some borrowers as they struggle to afford basic necessities and other forms of debt. "I understand they want me to pay them and I'm willing to pay them," Fleshren said.

Persons: Chris Fleshren, he's, Biden's, —, Fleshren, Joe Biden's, I'm, There's, Pell Grant, It's, they're Organizations: Service, Information Systems, Joe Biden's Education Department, Security, Education Department, Higher Locations: Nelnet

☆ How a boomer just got $50,000 in student debt wiped out after making payments for 25 years
▼ + stars: | 2023-11-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

It's a result of an account adjustment for borrowers who made the required 20 or 25 years of payments. AdvertisementGeorge Tucker thought he would be resuming student-loan payments alongside millions of other borrowers this fall. Tucker, 63, owed just under $50,000 on his student loans when the more than three-year pause on federal payments ended in October, per documents reviewed by Insider. Although PSLF was intended to forgive student debt after ten years of qualifying payments, Tucker said paperwork challenges with the program threw him off track, and he was not anticipating debt relief. George Tucker got $50,000 in student debt wiped out.

Persons: George Tucker, It's, Tucker, —, Little, he's, PSLF, MOHELA, Harris, Joe Biden's, isn't, Miguel Cardona, servicers, Jason Harmon, Harmon couldn't Organizations: Service, Public, Harris Administration, Biden, Joe Biden's Education Department, Department, Education, Education Department, MOHELA

☆ The GOP plan to avoid a government shutdown in 5 days could actually help student-loan companies struggling to manage repayment
▼ + stars: | 2023-11-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It includes flexibility for the Education Department to reallocate money to student-loan companies. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementRepublican lawmakers' latest plan to keep the government funded includes some flexibility for the Education Department as it manages a challenging return to repayment. The Education Department referred Insider to the Office of Management and Budget for a comment on the proposal.

Persons: —, Mike Johnson, Johnson, Chip Roy, Pelosi, Sen, Chris Murphy Organizations: Republicans, Education Department, Service, Department, Management, OMB, Conservative, Senate, NBC

☆ A boomer on short-term disability isn't required to make student-loan payments right now. Her servicer took out $200 from her bank anyway.
▼ + stars: | 2023-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Amy, 59, is not required to make any student loan payments while pursuing her teaching certificate. It comes as the Education Department is working to strengthen oversight over servicers. AdvertisementAdvertisementWhile federal student-loan payments resumed for most borrowers in October, Amy, 59, knew she was not expected to make any payments. "But that's not the case with student loans. "It's ridiculous these companies get contracts for federal student loans," Amy said.

Persons: Amy, servicer, —, MOHELA, Joe Biden's, servicers, Amy —, she's, that's, it's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education Department, The Education Department, Aid, Biden, Harris Administration, Education

☆ Student-loan borrowers facing bad customer service could be transferred to a 'high-performing' company if issues persist, Biden's Education Department says
▼ + stars: | 2023-11-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released new guidance on holding student-loan servicers accountable. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementPresident Joe Biden's Education Department just warned student-loan companies that they can't keep getting away with bad behavior. On Thursday, the Education Department announced a new framework for holding services accountable as the transition back into repayment for millions of borrowers continues. The framework outlines how the department will monitor the quality of customer service borrowers are receiving from their servicers, along with punishments when servicers do not fulfill their contractual obligations.

Persons: servicers, —, Joe Biden's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education, Biden, Harris Administration, Education, MOHELA Locations: servicers

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