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Home Degree Basics Community College

An Analytical Report on the Two-Year Cost of Community College in the United States

by Genesis Value Studio
October 1, 2025
in Community College
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Table of Contents

    • Executive Summary
  • Section 1: The Comprehensive Two-Year Cost of Community College: Beyond the Sticker Price
    • 1.1 Introducing the Total Cost of Attendance (COA)
    • 1.2 The National Average “Sticker Price”
    • 1.3 The Critical Distinction: Sticker Price vs. Net Price
  • Section 2: Deconstructing the Sticker Price: A Detailed Analysis of Cost Components
    • 2.1 Tuition and Mandatory Fees: The Cost of Instruction
    • 2.2 Housing and Food: The Largest Expense
    • 2.3 Books, Supplies, and Technology
    • 2.4 Transportation and Personal Expenses
  • Section 3: The Geographic Variable: How State and Residency Status Dictate Price
    • 3.1 The Three Tiers of Public College Pricing: In-District, In-State, Out-of-State
    • 3.2 State-by-State Cost Comparison: A Tale of Two Countries
  • Section 4: From Sticker Price to Net Price: A Guide to Financial Aid and Cost Reduction
    • 4.1 The Foundation of Financial Aid: The FAFSA and Federal Grants
    • 4.2 The Promise of Free Tuition: State-Level Programs
    • 4.3 Institutional and Private Scholarships: Tapping into College and Community Funds
  • Section 5: A Strategic Comparison: Community College vs. The Four-Year University
    • 5.1 Quantifying the Savings: A Two-Year Cost Analysis
    • 5.2 The 2+2 Pathway: The Smartest Route to a Bachelor’s Degree?
  • Section 6: Historical Context and Future Outlook: Analyzing Cost Trends
    • 6.1 The Last Decade: A Tale of Two Prices
    • 6.2 The Real Driver of Rising Costs: Living Expenses
    • 6.3 Future Outlook: The Interplay of State Funding, Inflation, and Policy
  • Conclusions

Executive Summary

This report provides a comprehensive analysis of the costs associated with obtaining a two-year associate’s degree or certificate from a community college in the United States.

The central finding is that while the national average “sticker price,” or total Cost of Attendance (COA), for a two-year program is substantial—estimated at approximately $41,140 for the 2024-2025 and 2025-2026 academic years—the actual “net price” paid by students is significantly lower.

For the majority of first-time, full-time students at public community colleges, federal and state grant aid is sufficient to cover the entire cost of tuition and mandatory fees.

The analysis reveals that the most significant financial burden for community college students is not the cost of instruction but the cost of living.

Non-tuition expenses—primarily housing, food, and transportation—constitute roughly 80% of the total student budget.

Consequently, even as tuition becomes more manageable through aid, these ancillary costs remain a formidable barrier to student success.

Furthermore, the cost of community college varies dramatically by geographic location and residency status.

A student’s state and local district of residence can alter their tuition costs by a factor of six, making geography a critical element of financial planning.

This report deconstructs every component of the COA, provides a detailed guide to the financial aid landscape—including federal grants, state-level “Promise” programs, and institutional scholarships—and offers a strategic comparison to the costs of a four-year university.

The findings underscore that a two-year community college education, when approached with a sound financial strategy, represents the most affordable and financially prudent pathway in American higher education.

Section 1: The Comprehensive Two-Year Cost of Community College: Beyond the Sticker Price

Understanding the full financial commitment of attending community college requires looking beyond the widely advertised tuition rates.

The true cost is encapsulated in a federally defined figure known as the Cost of Attendance (COA), which provides a holistic estimate of all educational expenses for an academic year.

This figure is not only a planning tool for students but also the cornerstone upon which financial aid eligibility is built.1

1.1 Introducing the Total Cost of Attendance (COA)

The COA, as defined by the Higher Education Act, is a comprehensive budget that includes both direct and indirect costs.

Direct costs are charges billed directly by the college, such as tuition, mandatory fees, and, if applicable, on-campus housing and meal plans.2

Indirect costs are other necessary expenses a student will incur while enrolled, which are not paid to the institution.

These include books, supplies, transportation, personal expenses, and off-campus living costs.4

Every college is required to calculate a COA to set a limit on the total financial aid a student can receive and to determine their level of financial need.1

1.2 The National Average “Sticker Price”

The “sticker price” refers to the full, published COA before any financial aid is applied.

For the 2024-2025 academic year, the College Board estimates that the average annual budget for a full-time, in-district student at a public two-year college is $20,570.5

This figure assumes the student is a commuter, which is the most common scenario for this population.

Over a two-year period, this amounts to a total estimated sticker price of

$41,140.

Other analyses, using slightly older data, have placed the total two-year cost for an in-state student at approximately $33,524, underscoring the variability in estimates and the continuous rise in costs.7

1.3 The Critical Distinction: Sticker Price vs. Net Price

The sticker price represents the maximum potential cost, but it is not the amount most students actually pay.

The more relevant figure is the “net price,” which is the COA minus all grant and scholarship aid—money that does not need to be repaid.3

The net price is the actual out-of-pocket cost that a student and their family are responsible for covering through savings, income, or loans.

A pivotal finding from the College Board reveals that since the 2009-2010 academic year, the average amount of grant aid received by first-time, full-time students at public two-year colleges has been sufficient to cover the full cost of their tuition and fees.9

This effectively means that for the average student receiving aid, tuition is free.

When all costs are considered, the average net price for attending a community college is estimated to be $15,800 per year.10

This figure highlights a fundamental reality of community college financing: while grant aid often eliminates tuition as a direct expense, students are still left with a significant financial responsibility to cover their living expenses.

The conversation about college affordability, particularly at community colleges, must therefore shift from a narrow focus on tuition to a broader consideration of the total cost of living while pursuing an education.

Even with “free” tuition, a student must still find a way to pay for housing, food, transportation, and other essentials, which together constitute the bulk of their financial burden.

The table below illustrates how a student’s living arrangement is the single largest determinant of their total sticker price, far outweighing the cost of tuition itself.

Table 1: Estimated Two-Year Total Cost of Attendance (COA) at Public Community Colleges (2023-2024)
Cost Component
Tuition & Fees (In-District)
Housing & Food
Books & Supplies
Transportation
Personal & Misc. Expenses
Total Estimated COA
Data synthesized from.13

Section 2: Deconstructing the Sticker Price: A Detailed Analysis of Cost Components

The total Cost of Attendance is an amalgamation of several distinct expense categories.

While tuition and fees are the most visible costs, they represent less than a quarter of the average community college student’s budget.

Understanding each component is essential for accurate financial planning.

2.1 Tuition and Mandatory Fees: The Cost of Instruction

Tuition is the charge for academic instruction, while mandatory fees cover a range of institutional services.

For the 2024-2025 academic year, the national average for published tuition and fees at a public, in-district two-year college is $4,050.9

This represents a modest $100 increase from the $3,990 average in 2023-2024.11

Colleges typically charge tuition on a per-credit-hour basis.

For example, Austin Community College in Texas charges in-district students $85 per credit hour, which is a combination of a $67 tuition charge and $18 in fees.12

A full-time load of 15 credits per semester at this rate would total $1,275 per semester, or $2,550 per year.

Mandatory fees can vary widely and may include charges for student activities, technology, labs, or even campus construction projects.13

The type of institution also dramatically affects this cost.

While public in-district tuition averages around $4,072, the average at private nonprofit two-year colleges is $17,786, and at private for-profit institutions, it is $16,477.15

2.2 Housing and Food: The Largest Expense

For the vast majority of community college students, housing and food are the largest and most challenging expenses, often exceeding all other costs combined.16

The average estimated budget for housing and food for a commuting community college student in 2024-2025 is

$10,390.6

This single category accounts for over 50% of the total average COA.16

These costs are highly dependent on a student’s living situation.

Data from 2023-24 shows the average cost for on-campus housing and food at a public two-year college was $8,165, while living off-campus independently cost an average of $11,462.15

In contrast, a student living at home with their parents might have a food and housing allowance in their COA of less than $3,000.4

This variance demonstrates that a student’s living arrangement is a more significant cost driver than their college’s tuition rate.

2.3 Books, Supplies, and Technology

This category covers required textbooks, course materials, lab equipment, and necessary technology, such as a personal computer, which is an allowable cost within the COA.1

For the 2024-2025 academic year, the average budget for books and supplies at a community college is estimated at

$1,520.5

Other estimates place this figure in a range of $1,341 to $1,640 per year.15

Interestingly, this budgeted amount is slightly higher than the corresponding estimate for students at public four-year universities, which is $1,290.6

This may be because community college students, who are predominantly commuters, do not benefit from the large, subsidized university bookstores and extensive library systems that can help reduce costs for their four-year counterparts.

Additionally, the rise of “Direct Digital Access” programs, where the cost of digital textbooks is automatically billed as a course fee, is an evolving component of this expense category.13

2.4 Transportation and Personal Expenses

These indirect costs, while highly variable, are essential components of a student’s budget.

For 2024-2025, the average budget for transportation is $2,010, and for other personal expenses, it is $2,600.6

Transportation costs are particularly relevant for community college students, as the vast majority commute to campus.

This figure accounts for fuel, vehicle maintenance, or public transit fares.1

Personal expenses are a broad category covering everything from clothing and laundry to cell phone bills, health insurance, and entertainment.4

Like books and supplies, the budgeted amount for transportation is notably higher than for on-campus students at four-year institutions ($1,340), reflecting the daily costs associated with commuting.6

Table 2: Breakdown of Average Annual Cost Components for In-District Community College Students (2024-2025)
Expense Category
Tuition & Fees
Housing & Food
Books & Supplies
Transportation
Other Personal Expenses
Total Estimated Annual COA
Data sourced from the College Board.5

Section 3: The Geographic Variable: How State and Residency Status Dictate Price

The cost of a public community college education is not a single, national number.

It is a highly localized price, dictated primarily by a student’s place of residence.

The state, and often the specific county or district, where a student lives is the most powerful determinant of their tuition bill.

3.1 The Three Tiers of Public College Pricing: In-District, In-State, Out-of-State

Public community colleges are funded by a combination of state and local tax revenues.

To reflect this, they operate on a tiered pricing model based on residency.

  1. In-District: This is the lowest tuition rate, offered to students who are legal residents of the college’s specific tax district (often a county or group of counties). For the 2023-2024 academic year, the national average in-district tuition and fees were $4,072.15
  2. In-State (Out-of-District): This rate applies to students who are residents of the same state but live outside the college’s specific tax district. The average in-state tuition and fees were $4,815.15
  3. Out-of-State: This is the highest rate, charged to students from other states or countries. The national average out-of-state tuition and fees were $8,912.15

The financial difference between these tiers can be substantial.

At Austin Community College, for example, a full-time in-district student taking 12 credits per semester pays $1,020 in tuition and fees.

However, an out-of-district student—who is still a Texas resident—pays $3,432 for the same course load.

That is a difference of over $2,400 per semester, or nearly $5,000 per year, for simply living on the wrong side of a district line.12

3.2 State-by-State Cost Comparison: A Tale of Two Countries

The variation in tuition is even more pronounced at the state level.

The level of public investment in higher education varies enormously across the country, leading to a vast chasm in what residents are expected to pay.7

According to the College Board’s data for the 2024-2025 academic year, the United States effectively has two different systems of community college pricing.

At the low end are states like California, with an average annual tuition of just $1,440, and New Mexico, at $2,220.

At the high end is Vermont, where students pay an average of $8,660 per year.5

This means a student in Vermont pays six times more in tuition than a student in California for a comparable public two-year education.

This disparity creates a powerful financial incentive based on geography.

For a family or an independent student with the ability to relocate, establishing residency in a low-cost state can be a profound financial strategy.

The two-year tuition difference between Vermont and California is over $14,400.

This is a sum of money equivalent to a reliable used car or a significant portion of a down payment on a home, all predicated on the student’s address.

This “residency arbitrage” is a little-discussed but highly impactful element of college financial planning.

Table 3: Comparative Analysis of Average Annual In-District Community College Tuition and Fees, by State (2024-2025)
State
California
New Mexico
North Carolina
Arizona
Texas
Florida
Georgia
Nebraska
Colorado
Arkansas
Kansas
Nevada
Maine
Michigan
Wyoming
Illinois
Louisiana
Maryland
Washington
Ohio
Indiana
Wisconsin
Connecticut
Delaware
Alabama
South Carolina
Rhode Island
Pennsylvania
Minnesota
Alaska
Massachusetts
Iowa
New Hampshire
South Dakota
Vermont
Note: Data is a synthesis of the most recent available figures from.6 Some states may be omitted due to lack of recent, consistent data. The list is sorted to illustrate the range of costs.

Section 4: From Sticker Price to Net Price: A Guide to Financial Aid and Cost Reduction

The sticker price of community college is rarely the final price.

A vast ecosystem of financial aid exists to reduce the cost for students, often dramatically.

Navigating this system effectively is the key to making community college truly affordable.

The process begins with a single form: the FAFSA.

4.1 The Foundation of Financial Aid: The FAFSA and Federal Grants

The Free Application for Federal Student Aid (FAFSA) is the universal key that unlocks access to nearly all forms of financial aid, including federal, state, and institutional funds.17

The information provided on the FAFSA is used to calculate a student’s Student Aid Index (SAI), which determines their eligibility for need-based aid.

  • The Federal Pell Grant: This is the cornerstone of need-based aid for undergraduate students. For the 2024-2025 and 2025-2026 award years, the maximum Pell Grant award is $7,395 per year.19 The amount a student receives depends on their SAI, the college’s COA, and their enrollment status.22 Because the average community college tuition is around $4,050, a student who qualifies for a significant portion of the Pell Grant can have their entire tuition and fee bill covered, with remaining funds available to help pay for books, supplies, and living expenses.9 Students are limited to a lifetime equivalent of six years (600%) of Pell Grant funding.23
  • Federal Supplemental Educational Opportunity Grant (FSEOG): This is another federal grant program for undergraduate students with exceptional financial need. Schools receive a certain amount of FSEOG funds to award to their neediest students. Awards can range from $100 to $4,000 per year, providing an additional layer of grant aid on top of the Pell Grant.18

4.2 The Promise of Free Tuition: State-Level Programs

In recent years, a growing number of states have created “Promise Programs” designed to make community college tuition-free for eligible residents.7

These programs vary significantly in their structure and requirements.

  • Case Study: California’s Need-Based Waiver. The California College Promise Grant (CCPG) is a need-based program that waives the $46-per-unit enrollment fee for eligible California residents. Eligibility is determined by meeting certain income ceilings, receiving public assistance like TANF or SSI, or demonstrating sufficient financial need on the FAFSA.25 This program is a “first-dollar” waiver, meaning it applies before other aid. Separately, many California community colleges have local Promise Programs, often funded by Assembly Bill 19, that may cover two years of tuition for recent high school graduates who enroll full-time, sometimes including book vouchers and counseling support.28
  • Case Study: Tennessee’s “Last-Dollar” Scholarship. The Tennessee Promise is a “last-dollar” scholarship. This means it covers any tuition and mandatory fees that remain after all other gift aid (like the Pell Grant and state HOPE scholarship) has been applied.30 While it is not based on financial need, it has strict non-financial requirements, including applying as a high school senior, attending mandatory meetings, working with a mentor, and completing eight hours of community service each semester.33
  • Case Study: Michigan’s Universal Guarantee. The Michigan Community College Guarantee is a “first-dollar” program that covers the full cost of in-district tuition and mandatory fees for recent Michigan high school graduates attending their local community college. The program has no income requirements, making it universally available. Furthermore, students who are eligible for the Pell Grant receive an additional $1,000 Michigan Achievement Bonus award to help with other college costs.36

4.3 Institutional and Private Scholarships: Tapping into College and Community Funds

Beyond government aid, significant funding is available directly from colleges and private organizations.

  • Institutional Aid: Many community colleges have foundations that raise money to provide scholarships for their students.17 These can be need-based or merit-based. For instance, the Maricopa Community Colleges in Arizona offer over 600 distinct scholarships through their foundation 38, while the Foundation for Colorado Community Colleges offers awards ranging from $1,000 to $5,000.39 Kapiʻolani Community College in Hawaii offers several institutional grants, including need-based opportunity grants and achievement-based awards.40
  • Private Scholarships: National and local organizations also provide scholarships specifically for community college students. The most prestigious of these is the Jack Kent Cooke Foundation Undergraduate Transfer Scholarship, which provides up to $55,000 per year for up to three years to high-achieving community college students transferring to a four-year university.41 Other organizations, like Scholarship America, administer scholarships from corporate sponsors such as Burger King, Amazon, and Wells Fargo that are open to community college students.42

The various streams of financial aid are not mutually exclusive; they can be combined or “stacked.” An effective financial strategy involves pursuing aid from all available sources.

For example, a low-income student in California could have their tuition waived by the CCPG.

They could then receive a full Pell Grant of $7,395.

On top of that, they might qualify for a Cal Grant from the state and a $1,000 scholarship from their college’s foundation.

In this scenario, the student has not only eliminated their tuition cost but has also secured over $8,000 in grant aid to pay for books, transportation, and living expenses, significantly reducing their need to work long hours or take out loans.

Table 4: Overview of Major Financial Aid Programs for Community College Students
Program Name
Federal Pell Grant
FSEOG
California College Promise Grant
Tennessee Promise
Michigan Community College Guarantee
Jack Kent Cooke Transfer Scholarship

Section 5: A Strategic Comparison: Community College vs. The Four-Year University

For many students, the ultimate goal is a bachelor’s degree.

The choice is not necessarily between community college and a university, but between two different pathways to the same destination.

The “2+2 pathway”—starting at a community college and then transferring—offers a route to a bachelor’s degree with substantial financial advantages.

5.1 Quantifying the Savings: A Two-Year Cost Analysis

A direct comparison of the costs for the first two years of college reveals a stark difference between the two pathways.

  • Tuition and Fees: Based on 2024-2025 national averages, two years of tuition and fees at a public, in-district community college costs approximately $8,100 ($4,050 per year).9 The first two years at a public, in-state four-year university cost an average of
    $23,220 ($11,610 per year).9 This creates an immediate savings of
    $15,120 on tuition and fees alone. On average, community college tuition is only about 35% of the tuition at a public four-year institution.11
  • Total Cost of Attendance (COA): The savings are even greater when considering the full cost of attendance. A student maximizing savings by attending a local community college while living with family might face a two-year COA of approximately $31,400 (based on an annual COA of $15,700).8 In contrast, a student living on campus at a public four-year university faces an average two-year COA of
    $59,820 ($29,910 per year).6 This represents a total estimated savings of over
    $28,000.

5.2 The 2+2 Pathway: The Smartest Route to a Bachelor’s Degree?

The 2+2 pathway is a powerful financial strategy.

A student who successfully completes two years at a community college and then transfers to a four-year university earns the exact same bachelor’s degree as a student who spent all four years at the university.44

The diploma from the graduating university does not indicate that the student was a transfer.

However, the financial outcomes for the two students can be vastly different.

The savings generated in the first two years—often in the range of $20,000 to $30,000—directly translate into avoided student loan debt.46

The average student loan debt for a bachelor’s degree recipient is over $30,000.44

By starting at a community college, a student can potentially eliminate this debt entirely.

This is not merely a cost-saving measure; it is a strategy for long-term financial health.

A graduate who enters the workforce without student loan debt is in a much stronger position to save for a down payment on a house, invest for retirement, or take entrepreneurial risks.

The choice of where to begin higher education can therefore have compounding financial effects that last a lifetime.

Table 5: Two-Year Cost Comparison: Public Community College (In-District) vs. Public Four-Year University (In-State)
Cost Component
Tuition & Fees
Housing & Food
Books & Supplies
Transportation
Personal & Misc. Expenses
Total 2-Year Estimated Cost
Total 2-Year Estimated Savings
Note: Figures are estimates for two full academic years based on a synthesis of 2023-2025 data from.6 Community college costs assume a student lives with family to maximize savings.

Section 6: Historical Context and Future Outlook: Analyzing Cost Trends

The cost of community college has evolved over the last decade, but the story is complex.

It is a tale of two different prices: the sticker price, which has seen modest growth, and the net price, which has remained remarkably stable for students receiving aid.

6.1 The Last Decade: A Tale of Two Prices

  • Sticker Price: Published tuition and fees at public two-year colleges have risen over the past decade, but when adjusted for inflation, the increase has been minimal. According to the National Center for Education Statistics (NCES), the average tuition and fees in constant 2022-2023 dollars were approximately $4,000 in 2012-2013 and remained at $4,000 in 2022-2023, after peaking around $4,500 in 2020-2021.47 Before adjusting for inflation, some data suggests a 20% or more increase over 10 years, highlighting the importance of looking at inflation-adjusted figures to understand the real change in cost.48
  • Net Price: The more significant trend is what has happened to the net price. As noted previously, since 2009-2010, the average grant aid for first-time, full-time community college students has been sufficient to cover their tuition and fees.9 This means that for over a decade, the average
    net tuition and fees have effectively been at or below zero. The growth in federal and state grant aid has successfully outpaced the modest increases in tuition, keeping the instructional component of community college affordable for low- and middle-income students.

6.2 The Real Driver of Rising Costs: Living Expenses

The stability of net tuition stands in stark contrast to the relentless rise in the other components of the COA.

The primary factor driving up the total cost of attendance for students is not tuition, but the increasing cost of living.

Between 1963 and 2022, while tuition more than tripled in real terms, the cost of room and board also nearly doubled.49

This trend continues today.

Macroeconomic factors like inflation in local housing markets, food prices, and energy costs have a much greater impact on a student’s total budget than any tuition increase enacted by their college.

This creates a fundamental decoupling in the financial narrative.

The story of tuition has become one of policy-driven stability, where grants and waivers have kept costs in check.

In contrast, the story of the total cost of attendance has become one of market-driven increases, where students are exposed to the same inflationary pressures as all other consumers, but often with limited income.

6.3 Future Outlook: The Interplay of State Funding, Inflation, and Policy

Looking forward, the affordability of community college will be shaped by three key forces:

  1. State and Local Funding: Public community college tuition is highly sensitive to state appropriations. During economic downturns, states often cut higher education funding, forcing colleges to raise tuition to cover the gap. Future tuition rates will depend heavily on the economic health of states and their legislative commitment to funding higher education.7
  2. Financial Aid Policy: The continued expansion of state Promise Programs and any future increases in the maximum Federal Pell Grant will be the most powerful policy levers for maintaining affordability. These programs directly reduce the net price for students.
  3. Broader Economic Trends: Ultimately, the true affordability of community college for students will be inextricably linked to the costs of housing, food, and transportation in their local communities. Future policy solutions that hope to meaningfully address the affordability crisis must look beyond tuition and consider integrated support for these essential non-tuition costs.
Table 6: Ten-Year Trend in Average Public Two-Year College Costs (Constant 2024 Dollars)
Academic Year
2014-2015
2016-2017
2018-2019
2020-2021
2022-2023
2024-2025 (Est.)
Note: This table is an illustrative synthesis based on trends identified in.9 Figures are rounded and adjusted for inflation to demonstrate the general trend of grant aid outpacing tuition increases, resulting in a negative net tuition price.

Conclusions

The cost of attending community college for two years is a complex and highly variable figure that cannot be reduced to a single number.

This analysis yields several key conclusions for prospective students, families, and policymakers:

  1. The Sticker Price is Misleading; Net Price is Reality. The published Cost of Attendance, averaging over $20,000 per year, can be daunting. However, the net price after grant aid is substantially lower. For the average student receiving aid at a public community college, tuition and fees are fully covered, shifting the financial burden entirely to living expenses.
  2. Living Expenses are the Primary Financial Barrier. The most significant costs for community college students are not for instruction but for housing, food, and transportation. These non-tuition costs account for approximately 80% of the student budget. This indicates that policies and support systems focused solely on tuition, while beneficial, are insufficient to address the full scope of financial challenges students face.
  3. Geography and Financial Strategy are Paramount. A student’s cost can vary by a factor of six based on their state of residence. Furthermore, a proactive approach to “stacking” financial aid—combining federal, state, institutional, and private awards—can dramatically reduce out-of-pocket costs and minimize the need for student loans.
  4. The 2+2 Pathway is a Powerful Tool for Financial Health. Starting at a community college and then transferring to a four-year university is the most financially prudent path to a bachelor’s degree. This strategy can save a student over $28,000 in total costs over two years, enabling them to graduate with little to no debt and begin their careers on a much stronger financial footing.

In conclusion, while the path through community college requires careful financial navigation, it remains the most affordable entry point into American higher education.

By understanding the full cost of attendance, leveraging all available financial aid, and making strategic choices about where to live and study, students can access a quality education that serves as a foundation for future success without incurring debilitating debt.

Works cited

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