Comparing the Different School Loan Consolidation

When you're looking for a school loan consolidation to combine your many student loans into one payment, there are a lot of rules that you must follow, especially if your loans are federal loans. Here, we outline some of these rules to help you navigate the school loan consolidation maze.

There are two different school loan consolidation programs; namely, the Federal Family Education Loan (FFEL) and the Direct Consolidation Loan programs. It's important to know the difference between the two. First, any school loan consolidation that you want combined have to be accepted by the Direct Consolidation Loan Program. Federal Family Education Loan lenders might accept all eligible loans for the FFEL consolidation, but some lenders might not include non-FFEL loans in the school loan consolidation. However, if a loan isn't accepted in the Federal Family Education Loan consolidation program, lenders might offer alternative school loan consolidation programs for these debts.

School loan consolidation lenders under the Federal Family Education Loan program must offer several repayment programs. These include the standard repayment plan, the graduated repayment plan, an extended repayment plan, and an income-sensitive repayment plan. Keep in mind that although these four repayment plans are offered by all FFEL lenders, the actual details of the repayment can vary. For example, the income-sensitive repayment plan takes the borrower's income and total debt load into account.

With the Direct Loan Program, you are offered the standard repayment plan, the graduated repayment plan, the extended repayment plan, and the income-contingent repayment plan. With this particular income-contingent repayment plan, the payment is based on a formula that takes the borrower's income, family size, and total loan amounts into account.

If you default on an FFEL consolidation loan, some lenders might allow you to include the defaulted loan into a new consolidation loan. However, not all lenders will offer this option. The Direct Loan Program also has stipulations for consolidating defaulted loans into new loans. If you are eligible to consolidate your defaulted loans into a new loan, you will regain eligibility for federal student aid.

Under the Direct Consolidation Program, you may consolidate your loans while you are enrolled in school. If you are eligible for an in-school consolidation, you can get a six month grace period before repayment begins. You might also qualify for a lower interest. If you have only FFEL loans, you might still be eligible for a consolidation and grace period while still in school through the Direct Consolidation Loan program. With the FFEL consolidation program, you can only consolidate your loans after leaving school, and all your loans have to be in the grace period or repayment period.

by Javier Conde

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College Loan Consolidation For Students

For most students who incurred various debts and loans opted for a college loan consolidation. For the most students the benefits and advantages out weights the pitfalls. Thus understanding the basics of college loan consolidation gives more options.

Few families and high-school students can afford to pay for a traditional college education without some financial aid, either in the availability of loans or scholarships. Many students who have student loans and are getting stress out with their financial management choose to take a college loan consolidation.

Students currently enrolled in high school that are looking towards the future and college, may not have the costs of their schooling in mind when considering where to apply. Student loan consolidation basically lowers the monthly payment for all the student loans taken earlier.

You can always engage remission if you make a college loan consolidation or a school loan consolidation for all your student loans. Federal Student Loans set up several benefits over private loans. Applying for financial aid or student loan consolidation can seen overwhelming, but it is really quite steady.

Stafford Loans are low interest rate loans borrowed in the students own name. There is no credit report review. Co-signers are not required. The funds for Stafford Loans are provided by private lenders and are subsidized and guaranteed by the Federal government. Generally, federal consolidation loans are easier to put than their private consolidation loan counterparts.

The Direct Federal Loan Consolidation program offers a special income-contingent option to students who permit borrowed at a heavy level. One of the advantages to a consolidation loan is that the new interest rate is a weighted average of the interest rates of the combined loans rounded to the nearest 1/8 of a percent. Even if you put already consolidated loans before, we can refinance lone loan from solitary institution. Stafford loans, PLUS loans, private loans, they are all eligible for consolidation.

Varying scholarships put varying requirements If you are going to settle upon a college loan consolidation or a school loan consolidation get hold of sure to look for the lowest rate of interest so that will not hurt you in the long run. Scholarships are provided by colleges and universities to their prospective students, as well as by private organizations, churches, insurance and mutual companies, and public service organizations. All scholarships carry fostering deadlines and minimum requirements. It is also always a good idea to find your high school counselor to check into local scholarships.

Most scholarships are based on academic merit, athletic skills, religious affiliations, gender, or ethnicity. Many students interested in obtaining assistance with future college costs, apply for specific scholarships.

The Federal Stafford Loans, available to both undergraduate and graduate students, are one of the top-notch affordable ways to pay for school. No credit check is required during the wizardry and there are no fees (in fact, the government prohibits lenders from charging fees) and no exercises verifications The improvement consists of a short federal form listing your contact answer and detailing the loans you owe, who currently holds them and what the balances and interest rates are. Anyone with qualifying federal student loans or federal parent loans is eligible for student loan consolidation.

You can apply as soon as you finish school or after your loans go into a grace or repayment period.Be aware that your current lender may view you as a captive customer and as a result may not be as motivated to offer you additional incentives to consolidate.

In order to permit a better handle on your debt burden, accept a school loan consolidation or college loan consolidation. Given the government sympathize with and subsidy, consolidation loans are very profitable for private lenders.

Being well armed with the knowledge and understanding of college loan consolidation may give you the advantage of negotiating a better deal. College loan consolidation is available to almost any student but you to apply and qualify for it.

by Shellaine Enfesta

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Financial Aid Options for Students

When coming to the school for financial assistance there are two main sources: personal funds and financial support federally funded financial assistance. When applying to receive good or you need to make sure that you are fully aware of all that is involved both in print. Most people find that the cost of schools that are far too large to afford without the assistance of some kind. If you are a parent you will likely encounter some day have to pay school fees, together with worries about how you will manage the earth to achieve this.

The problem is that not every student who wants to attend university qualification for both federally funded student aid or most of the scholarships that require either exceptional value or particular talents and extraordinary to receive. For students to think outside the box may be required to receive education that is necessary financial support or assistance.

If you do not qualify for federal financial aid for your children, then you may want to consider the benefit of other scholarship options. One common scholarship option that is often overlooked is the ROTC program that most universities offer. There is a price to pay for these scholarships but many find that price provides valuable experience and is well worth the education and the experience received during the process. If your child is interested in the possibility of a military career or becoming a military officer, this is a great way to go.

As a parent you may want to see what sort of, if any, flexible spending accounts your state has set up that can help you set aside money for college expenses for your children. Many states have these and there are programs such as Upromise that allows you and others to dedicate the spending from a credit card to be used as a 'match' program for your child's college funds. While it isn't a dollar for dollar match of your credit card spending every little bit helps. The real beauty of programs like Upromise is that you can enlist the help of family in friends when saving for your child's college educational expenses. Regardless, it is never too early to begin saving for your child's college education and these expenses seem to be rising exponentially.

There are many programs that exist to help minorities and women pay for their educational expenses. Some of these scholarships are needs based while some of them are solely merit based. On all levels competition is fierce, however, if you qualify for any of these scholarships you would be doing yourself a disservice not to apply for them. You never know when your application might be the one that captures the attention of the scholarship committee. The one thing you should keep in mind is to read all the instructions, make copies of everything, and follow the directions. You'd be amazed at how many worth applicants are denied scholarships each year because they did not follow the directions on the application properly. Another thing you should keep in mind is neatness. You are much more likely to win a scholarship if the committee can actually read your application.

There are many great opportunities for financial assistance when it comes to college. The trick is typically in finding the great sources. Your college's financial aid office is an excellent source of information for financial aid as is your high school counselor. See what your options are before you sacrifice the dream of a college education.

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Facts About Student Loan Rates

Many people who want to pursue their education further will not afford college expenses and will need a student loan. And finding the best student loan rate of interest is an important factor that needs to be taken into consideration when searching for a student loan.

Usually a student loan won’t have to be repaid until the student graduates and has finished his or her schooling. This will allow the student to concentrate on studying and not be concerned about any kind of repayment plan.

After the graduate finishes his or her studies, the student loan rates will be an important factor since the graduate will be starting a new job, possibly finding new accommodation, and have travel and living costs to cover as well. Every cent will count in the beginning and even a difference of one percent in the repayment plan will have an effect on one’s living standards.
Some lending institutions charge fees to set up a student loan, and this is one factor that can increase the cost of the loan.

Often a lender will offer a low interest rate that seems very competitive, but these low rates are often offset or can actually cost more due to the fees that are charged. On the other hand lenders that don't charge the fees will roll over the costs into the student loan interest rate. As a general rule of thumb, three to four percent in fees is about the same as a one percent higher interest rate.

Be sure to check to see if the student loan interest rate is fixed or variable, because a fixed loan may be more expensive than a variable rate at the time of application but if the variable rates are to rise in the future then the fixed loan would have been the best option.

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Student Loans For All Incomes

If you are a student, you probably have a lot on your plate. You may be taking as many as six classes this semester and probably working a part-time job or doing work-study to help you pay for the many expenses that college students must bear. If your financial aid package, scholarships, and other loans are not sufficient to pay for all of your needs, you might want to consider taking out a private student loan.

Private student loans are fairly easy to obtain; however, they are different than the Stafford or Perkins loans that you might already have taken out. Private student loans do not have a government guarantee of repayment, and therefore carry slightly different terms and are available in different amounts than those types of loans.

Borrow From $2500 To $50,000

Your private student loan may be for any amount - usually $2500 on the low end and $50,000 on the high end. These loans are credit-based, which means that the lender will look at your credit score and report before determining if you can receive funding.

Most students are too young to have established credit. Others may have had a few blemishes on their credit that would make a student loan nearly impossible to receive. For student loan borrowers in those situations, borrowing with a cosigner can greatly improve your chances of getting your new student loan.

Parents Make Great Cosigners

Your parents are generally the best source for a cosigner, although your cosigner can be anyone who has established good credit. If you have no credit or bad credit, its best to apply directly on the application with your parents, instead of waiting for the application to be turned down and then reapplying. (Every inquiry into your credit deducts points from your overall credit score which means that if you know you have bad credit, apply with a cosigner the first time).

Create A Budget

Before applying for your new student loan, you should consider the amount that you will need to borrow, and for how long the funds should last you. This requires the creation of a budget. Take into account how much you will need (beyond any other financial assistance you receive) for tuition, housing, books, lab fees, computers and computer equipment, dining, and other expenses. You should determine if the student loan you take out will be for the entire academic year or just for this semester.

Once you have an amount in mind, you can make your application to the lender of your choice. When shopping for a lender, closely examine the interest rates and repayment terms for each of your options. You should be looking for a lender who offers the least amount of interest. There are certain lenders who may charge very little interest on your student loan until you have completed your last degree. Also, depending on your income, you will be able to either pay on your student loan immediately each month, or postpone payments until after you graduate.

There are many great online providers of private student loans. These lenders offer user-friendly websites that allow you complete the entire application process online from the comfort of your home.

by Lara Sawyer

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Alaska Student Loans Application Information

If you are applying for an Alaska student loan you are required to file a Federal Application for Student Financial Aid also known as the FAFSA. You ought to contact an adviser in the financial aid department of the university or college of your choice. These steps are pretty much like the student loan application anywhere in the country.

A financial aid adviser can also aid you with locating any scholarships or grants for which you may be eligible. The variance between Alaska student loans and scholarships or grants, is that loans must be repaid - whereas grants and scholarships do not. Bear in mind, however, that to keep a grant or scholarship, you will customarily be obliged to keep up a particular number of credit hours and/or a specific grade point average, or GPA.

This Is What You Will Need

To commence the process of applying for an Alaska student loan it is a must that all the essential documentation be there. You will have to have your social security number, bank statements, your tax records for yourself and your parents depending on your age and school information.

You will in addition need to demonstrate proof of what extra financial support you may be receiving . For instance . Whether or not you have a job, or are under twenty one and living under your parent's roof, can affect how much of a loan you will be able to obtain. Be sure to have all of your income information (and your parent's, if still at home) on hand before you fill out your application.

It is also essential to check your credit record, to make certain that there are no harmful reports from companies to whom you may have made delinquent payments, or just not paid at all. These bad reports can influence whether or not you are approved for certain student loans. Unsubsidized loans, for example, require that a student have a fairly clean credit record before approval.

If you are not yet twenty one, or if your main home is still your parents home, you may be able to qualify for Alaska student loans using your parents satisfactory credit standing. Parents are also able to apply for Alaska student loans, called PLUS loans, that can help to pay for their children's education.

Pell grants and other scholarships are also a an option. The best case scenario is that you qualify for enough scholarships that a loan is not need at all.

by David Lathan

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How To Refinance Your Private Student Loans

So many of us turn to private student loans to finance our graduate and undergraduate education. It's how many of us survived through those humbling college years. But when school is over, we are faced with the enormous tab that we racked up over the years. This can be overwhelming for a new graduate just starting out on his/her own. The refinancing and consolidation of your private student loans may alleviate some of the stress.

Making The Decision to Refinance Your Private Student Loans

In deciding whether or not you should refinance your student loans, it's important to weigh the benefits. One advantage of refinancing your private student loans is that if you have many loans, you can consolidate them all into one monthly payment. That way, you don't have to worry about keeping track of multiple due dates. Another advantage of making the decision to refinance your private student loans is that you can save money by securing a lower interest rate. When you initially took out your education loans, your interest rate may have been higher because of the market at that time or because of your credit rating (or lack thereof). Well, now things have most likely changed for the better. Taking advantage of lower interest rates now can save you thousands of dollars over the life of the loan.

Student Loan Eligibility for Refinance

No lender is going to give you the time of day if your student loans are in default status. Your loan MUST be current, with no outstanding payments due. Loans that are in deferment, forbearance, or in a grace period are all considered to be in an acceptable status. If you are paying on your loans and are not behind, you definitely have the thumbs up to apply for refinancing. It's also important to note that federal and private student loans cannot be refinanced or consolidated together. If you have both types of loans, you'll need to refinance them separately.

Getting Started

To get started, you need to first assess whether or not your loan is in an approved status. Check your credit report and call your current lenders to verify this. Once you've determined that you are eligible to refinance your private student loans, begin doing research online to find private student loan consolidation programs and lenders. Check with the major financial institutions, such as Chase, Wells Fargo, and Citibank. You may also stumble upon smaller lenders that are equally able to provide the same sort of quality service. Be sure to only settle with a lender that has a good reputation, which is verifiable through the Better Business Bureau.

by Anthony Foster

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Community Colleges Now Offering Four-Year Degrees

In this still-uncertain economy that remains rife with unemployment, hundreds of thousands of out-of-work blue- and white-collar professionals, competing for scarce available jobs, find themselves faced with the need to further their training, expand their skill sets, or in some cases change career paths altogether. Many are going back to school, some to obtain their first college degree, others to get an additional or more advanced degree that could give their résumé a much-needed competitive edge in a crowded marketplace.

In recent years, many “non-traditional” students who aren’t able to attend classes on the conventional resident college student’s full-time schedule — working parents, returning older students, students holding down a part-time or full-time job — have gravitated toward online degree programs that allow students to work toward their college degrees from home (or anywhere with a computer and an Internet connection) and at their own hours. As accredited online colleges and programs have proliferated, so have the number of students pursuing online college degrees.

These online college degrees, however, can often be pricey, requiring many students to take out a significant amount of money in student loans and private student loans. And some online universities have continued to offer only associate degrees and certificate programs, no bachelor’s or advanced degrees. As competition for jobs has intensified in a shrinking economy, many job-seeking professionals have found that their two-year college degree is going up against four-year and professional college degrees.

Community colleges have traditionally offered lower-income and non-traditional students a lower-priced, commuter-friendly, and part-time alternative to pricier online college degrees and full-time four-year colleges and universities. But the two-year community college degree has posed the same drawbacks as two-year online college degrees: When going up against four-year degrees in a job search, two-year degrees simply aren’t as competitive.

Four-Year Community Colleges Offer a Cost-Convenience Solution

Now, however, students are finding a growing number of four-year degree options at community colleges. As more community colleges respond to increased student demand for affordable higher education, expanding their programs to include four-year bachelor’s degrees and applied baccalaureate degrees, new and returning students are increasingly able to obtain the academic pedigree of a four-year degree with much of the flexibility offered by online college degree programs but at the lower cost of a community college education.

Bachelor’s Degree Programs at Community Colleges Expanding

Florida currently leads the nation with 14 community colleges authorized to award bachelor’s degrees, reports The New York Times, with 12 schools already having done so, in fields including fire safety management and veterinary technology (“Community Colleges Challenge Hierarchy With 4-Year Degrees,” May 2, 2009). Nationwide, 17 states, including Nevada, Texas, and Washington, have granted community colleges the authority to award associate and bachelor’s degrees.

In some states, community colleges have even become four-year institutions in order to facilitate their new longer programs. At Miami Dade College in Florida — formerly known as Miami Dade Community College — more than 1,000 students are currently enrolled in the school’s bachelor degree programs. The average age of these students is 33.

LaKisha Coleman, a Miami Dade student who will graduate with a college degree in public safety management this spring, recommends the school to family members for its advantages over a traditional four-year degree program at a state or private university.

“It’s much cheaper, the teachers are good, you can do it in the evening while you work, and everyone’s very helpful,” Coleman told The New York Times.

Applied Baccalaureate Degrees Another Burgeoning Community College Offering

In the current economy, at a time when students have fewer financial resources to cover their college costs and job prospects are uncertain, the applied baccalaureate degree is becoming a popular option for students, says Debra Bragg, the director of the Forum on the Future of Public Education at the University of Illinois at Urbana-Champaign.

Usually focusing on applied academics or applied sciences and technologies, an applied baccalaureate degree is a four-year bachelor’s degree that may be earned at both two- and four-year institutions, including technical colleges and community colleges. Unlike bachelor’s degrees at some conventional four-year universities, however, the applied baccalaureate degree counts technical and associate degree–level courses as degree credits, allowing community college students to keep their course costs low and minimize their need for student loans or other financial aid.

“Applied baccalaureate degree programs at community colleges can be used by students looking for a career that is emerging, or for adults who have earned college credits in the past and are looking to re-enter college, often to advance their careers to a supervisory level,” Bragg explains.

Since 2000, the number of states offering an applied baccalaureate degree has doubled, reports the University of Illinois. Currently, 39 states offer the degree.

by Jeff Mictabor

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Things You Should Know About Student Loan Debt Consolidation

The average American by the time he graduates or becomes a professional, and in the worst case scenario even if he doesn't graduate, accumulates a certain level of student loan debt. Whether they are federal loans or private student loans, the higher the educational achievement is the higher the level of student loan debt usually becomes.

That is the price students have to pay to make their dreams come true - to become a doctor, a nurse, a lawyer, or a Wall Street hotshot, student loan debt consolidation have been a major resource for so many years students spend in school. Usually, students have to pay off these multiple student loans the minute they finish school. Some however, have opted to pay for accrual of interest even when in school, and some have opted to defer payments until they get out of school.

No matter what the choice is, by the time an average American student finishes school, he is saddled with student loan debt. Not paying these student loans is not an option - defaulting on a federal student loan will get the government on your case with your salary and will not do any good to your credit report. As a rising hotshot, the last thing you need is to start off with a bad credit. If you are having difficulties making payments on your student loans, it might be the time to consider a student loan debt consolidation.

Before making that decision, there are several things you need to consider. When you consolidate, you actually have to consider some advantages and disadvantages. A student loan debt consolidation can significantly reduce your monthly payments because the debt is stretched out over longer payment terms. It would seem like you are making some savings from your monthly budget because of the additional money cut out from the required monthly payment.

Consolidation would also prevent you from defaulting on your student loans and ruining your credit. With monthly payments, it becomes easier for you to manage your credit and you get to save your credit report. But there is also the bad side to consolidating student loans, and knowing all these facts would help you make the wiser choice.

When you consolidate your student loan debts, always remember that many lenders actually offer a deferment plan to their borrowers in times of financial hardship. Federal student loans offer forbearance during financial difficulties. But if it is still not enough to get you back on your feet, then forbearance or deferment of payment may not help. Another thing to consider is the fact that once you apply for consolidation, you will get stuck with the interest rate you sign up with and you lose out on any borrower benefits provided by your lender.

Before opting for a student loan debt consolidation, carefully consider your options. Seeking financial advice from experienced credit counselors can be very helpful. Being honest to yourself would make the choice easier. Lastly, always opt for a plan that suits your financial situation.

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Education Savings Accounts

When coming to school to get education, financing is one of the most important considerations you need to do. Unfortunately for far too many things that last is one of the considerations made when it comes to our children's education. If you are a parent you owe it yourself and your child to plan ahead and plan carefully to cover the cost of your child's education. There are fortunately, a few more ways you can do this.

The most common is to start to open a savings education for your child (under 18). When you open a savings account for your child's education, you can be up to $ 2,000 per year per child. This is the combined total contribution, however, and includes contributions from grandparents, friends, family and in addition to your own personal contribution. Money from the fund can be taken tax-free as long as they are used for educational purposes.

Educational expenses in this case include books, tuition, fees, supplies, and college room and board provided that your child is at least a part-time student. If you do not use all the funds for your child there are options as far as what to do with the remaining funds in the account. The first option would be to leave the funds in the account and allow the account beneficiary to withdraw them up until the age of 30. There is a penalty involved and the beneficiary will be required to pay income tax on those funds. You could also elect to roll those funds over to the next child under the age of 18 who will have educational expenses in the future.

The money you set aside in these accounts to cover the cost of the education of your child or children is not tax-deductible however, it is a great way to begin saving money and investing in the future of your child. If you begin investing the maximum amount $2,000 per year upon birth your child should have a nice nest egg to help cover educational expenses. If your child is fortunate enough to qualify for scholarships and other sources of financial aid you can turn the funds over as a graduation gift or save it for the next college student in your family that comes along. Either way you've saved yourself a good part of the worry that goes along with providing for your family by having this fund set up for your children.

You can sign up for programs like Upromise in order to subsidize your contributions with donations from corporate sponsors as their way of thanking you for buying their products or using their services on any credit cards that you, your friends, and your family members have registered to go into your child's account. Every edge you give yourself when it comes to investing in the education of your children is an edge worth having. College tuition rates are rising at an alarming rate while corporate expectations of college degrees are rising at the same near lightening speed. This means that a college degree is more critical for our children than in any past generations.

Take the time now to check into securing the future of your children by establishing an educational savings account. Let friends and family know that any gifts they are planning to give your children that involve money would be appreciated if they instead invested in the future of your children rather than the now. You can also ask your friends and family to sign up their credit cards with Upromise in order to provide a little bump in donations to your child's college savings account. These little steps add up to significant savings over the course of 18 years. You just might find that the investment you are making is adequate to cover the costs of your child's tuition in full.

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Apply for a Student Loan

Applying for a student loan should be one of the first things on your list of things to do when it comes to applying for college. The student loan application is free, without obligation, and the amount you qualify for can help you make a decision about which college you will attend. You can apply for a student loan up to a year in advance as it takes longer than most people realize to line up all of the pieces necessary to begin college. If you haven't decided on a school, there's no reason to wait to apply for a student loan.

The student loan application simply lets you know how much funding you are qualified for and allows you to apply that amount toward the school of your choice. The process of applying for a student loan is similar to getting pre-approved for a home loan and then shopping for a house. Once you qualify, you have a specific amount of time to apply the student loan before applying for another.

Student Loans - An overview of the student loan application process
If the amount of the student loan you'll be eligible for will be a deciding factor in the school you choose, follow this process guideline:

1. Apply for a student loan online for quick turnaround.

2. Use the Ed-Loans Wizard ® to compare the total estimated costs of colleges you're considering.

3. Elect to receive your student loan award letter electronically to find out the amount of funding you're eligible to receive.

4. Apply for colleges within your price range. If early enough in the process, apply to your top 2 or 3 colleges and wait to hear back to save on college application fees.

5. Contact your student loan provider and complete the form letting them know which school you'll be attending.

6. For schools that offer Direct Loans, your student loan check will be sent directly to your school. Once the school receives the student loan check from the lender, they deduct any money owed to the school such as tuition, fees, housing, and meal plans, they give you a check for the remaining balance to spend as you see fit.

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