The ISIR Guide

2002–2003
U.S. Department of Education
 Table of Contents
I. INTRODUCTION .............................................................................................................................................1
Processing Flow................................................................................................................................................................1
Transactions.......................................................................................................................................................................3
Highlights and Assumptions...........................................................................................................................................4
Paper System Highlights and Assumptions..........................................................................................................4
Electronic System Highlights and Assumptions .................................................................................................4
2002–2003 Federal Application Processing System...................................................................................................6
Paper and Electronic (Non-Web) Processes.........................................................................................................6
Web Process...............................................................................................................................................................7

II. ISIR DATA ..........................................................................................................................................................8

ISIR Office Information ..................................................................................................................................................8
ISIR FAA Information.....................................................................................................................................................9
Date ISIR Received ................................................................................................................................................10
Verification Flag .....................................................................................................................................................10
Verification Tracking Flag ....................................................................................................................................10
System-Generated Indicator..................................................................................................................................10
FAA Adjustment Flag............................................................................................................................................10
Transaction Receipt Date ......................................................................................................................................11
Reprocessing Code.................................................................................................................................................11
Processed Record Type..........................................................................................................................................11
Early Analysis Flag ................................................................................................................................................11
Rejects Met..............................................................................................................................................................11
Dependency Override.............................................................................................................................................12
Duplicate Request...................................................................................................................................................12
Correction # Applied To ........................................................................................................................................12
Application Receipt Date ......................................................................................................................................12
Input Record Type..................................................................................................................................................12
Paid EFC Type ........................................................................................................................................................12
Pell Eligible Flag.....................................................................................................................................................13
Primary and Secondary EFCs/Alternate EFCs ..................................................................................................13
Intermediate Values................................................................................................................................................13
Auto Zero EFC Flag ...............................................................................................................................................14
EFC Change Flag....................................................................................................................................................14
SNT Flag ..................................................................................................................................................................14
Duplicate SSN Flag ................................................................................................................................................15
Subsequent App Flag .............................................................................................................................................15
Match Flags..............................................................................................................................................................15
Comment Codes......................................................................................................................................................15
NSLDS Financial Aid History......................................................................................................................................16
Flags (Upper Section) ............................................................................................................................................16
NSLDS Postscreening............................................................................................................................................16
Aggregate Amounts for FFELP/Direct Loans and Perkins Loan Section ....................................................17
Pell Payment Data Section ....................................................................................................................................18
Loan Detail Section ................................................................................................................................................18
Changes To NSLDS Data Since Previous Prescreening..................................................................................19
Additional ISIR Data......................................................................................................................................................19
Field Correction Flags............................................................................................................................................19
Verification Tracking Flags ..................................................................................................................................19

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III. CORRECTIONS AND UPDATES ...................................................................................................20
SAR Corrections.............................................................................................................................................................20
Parent Information for Independent Students............................................................................................................21
Signatures for SAR Corrections...................................................................................................................................22
Reject 16 SARs —Signatures and Certifications.......................................................................................................22
Reject 15 SARs —Renewal FAFSA on the Web.......................................................................................................22
Reject 14 SARs ...............................................................................................................................................................23
School Code Corrections...............................................................................................................................................23

APPENDIX A: 2002–2003 REJECT CODES AND REJECT REASONS

APPENDIX B: 2002–2003 DATABASE MATCHES AND MATCH FLAGS
APPENDIX C: 2002–2003 LOAN STATUS CODES AND ELIGIBILITY CHARTS
APPENDIX D: 2002–2003 SAR AND SAR INFORMATION ACKNOWLEDGEMENT
APPENDIX E: 2002– 2003 SAR/ISIR COMMENT CODES AND TEXT
APPENDIX F: ADDRESSES
APPENDIX G: SAMPLE ISIR (hardcopy)
APPENDIX H: WORKSHEET FOR QUESTION 35

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I. INTRODUCTION

This guide will assist financial aid administrators (FAAs) in interpreting student
information from an Institutional Student Information Record (ISIR), which is an
electronic record that is sent to the institutio n. The term ISIR refers to all processed
student information records that are sent electronically directly to institutions by the
Central Processing System (CPS).

A Student Aid Report (SAR) is the paper output document that is sent to the student.
SARs and ISIRs contain the same processed student information in different formats.
The SAR is explained in detail in Appendix D of this guide.

ISIRs are records sent to an institution through the Electronic Data Exchange (EDE), the
Department’s electronic service that allows institutions to send and receive electronic
data to and from the CPS and other Student Financial Assistance (SFA) systems. Drafts
of the 2002–2003 ISIR record layout for institutions and state agencies have been
provided at conferences beginning in July 2001, and can be downloaded in portable
document format (PDF) from the Information for Financial Aid Professionals (IFAP)
Web site at http://ifap.ed.gov. The EDE Technical Reference contains all the layouts.

This ISIR Guide explains codes and flags that appear as FAA information on the ISIR.

Changes to the design and data elements on the 2002–2003 Free Application for Federal
Student Aid (FAFSA) did not require corresponding changes to the ISIR, and we made
very few changes to the 2002–2003 application processing system. Information about
these system changes and enhancements will be posted to the ifap.ed.gov Web site in a
future Action Letter posting.

New for 2002–2003, students will receive an e- mail that routes them to an online SAR if
their transaction has:
1. a valid e- mail address,
2. a Social Security match flag value of 4,
3. no signature rejects, and
4. a blank Subsequent Application flag.

We are calling this process SAR on the Web (SOTW).

Processing Flow
The flow of information through the system remains basically the same in 2002–2003 as
in 2001–2002.

The student starts the process by filling out a FAFSA, and this information is “processed”
through the CPS and returned to the student and institution. The application information

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can be submitted on paper, electronically at the school through the Student Aid Internet
Gateway (SAIG), or using FAFSA on the Web or Renewal FAFSA on the Web.

The charts on pages 6 and 7 show how information about a financial aid applicant flows
through the system for the various types of applications and corrections. The major
participants and documents or records in the application process are:

1) The U.S. Department of Ed ucation (ED).

2) The student. He or she may apply for federal student aid under the Title IV
programs—Federal Pell Grant, Federal SEOG, Federal Work-Study, Federal Perkins
Loans, the Federal Family Education Loan Program, and the William D. Ford Federal
Direct Loan Program.

3) The financial aid application. There are different applications available that the
student must complete and submit in order to apply for federal student aid. These include
the paper FAFSA, the electronic FAFSA through EDExpress, FAFSA on the Web, or
Renewal FAFSA on the Web.

4) The FAFSA Processor. One organization will serve as the data entry processor for the
2002–2003 processing year under contract with ED. The FAFSA processor receives
applications in the mail, performs document analysis to check that data are acceptable,
and handles missing or unacceptable responses. The processor images the application,
enters the information from the application, and transmits it electronically to the CPS.

5) The Central Processing System (CPS). The CPS operates under a contract with ED to
receive and process application information. The CPS matches student records with
other databases to check eligibility. The CPS also applies a series of “compute edits” to
the application info rmation to check for inconsistencies, contradictions, and missing
information. During the compute process, the CPS uses the need-analysis formula
specified in the law to calculate each applicant’s Expected Family Contribution (EFC).

6) The Institutional Student Information Record (ISIR). ISIRs are electronic records that
are produced by the CPS and provide schools with processed application information.
ISIRs are transmitted electronically to destination points (schools, servicers, and state
agencies) daily through EDE.

7) The Student Aid Report (SAR) and the SAR Information Acknowledgement. These
paper documents provide the student with processed application information. The CPS
prints these forms and mails them directly to the address the student provided.
Alternatively, some students may get a SAR on the Web (SOTW) e- mail, as described on
the previous page.

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8) The School. The school refers to each postsecondary educational institution that the
student listed on the financial aid application. The financial aid administrator (FAA) at
the school will use the processed information from the ISIR (or SAR) to determine what
federal aid the student is eligible to receive. Schools and states may also use information
from the ISIR (or SAR) to award the ir own financial aid.

Transactions
A “transaction” is an interaction between the CPS and the financial aid applicant, or the
school acting on behalf of the applicant, that changes any of the data on the applicant’s
record. Each transaction results in a new ISIR and SAR, and is identified by transaction
number (i.e., 01, 02, 03). A transaction may sometimes be “system generated.” For
example, when a student’s eligibility for federal student aid changes on the National
Student Loan Data System (NSLDS), the CPS will automatically reprocess the
application information and generate a new transaction without additional input from the
student or from a school. These system- generated transactions will be sent to the school
in a separate electronic message class.

The transactions discussed here will be those where there has been interaction between
the student and the system, or the school and the system. When application data for an
award year first enter the CPS and are processed, the report that results is called the “01”
transaction. The student receives a SAR or SAR Information Acknowledgement and the
listed schools receive ISIRs. If corrections are necessary, the student makes these
changes on the SAR, returns the SAR to the FAFSA Processor, and the information is
reprocessed. Alternatively, the student can make the corrections electronically through
Corrections on the Web, or a school can enter corrections electronically through
EDExpress, even if the school did not submit the original application electronically. The
corrections generate a new record that is identified as an “02” transaction. This second
type of transaction is called a “correction,” although the term also is used to refer to the
updating of information.

To create a correction transaction, a change must be made to at least one data element.
The change can be anything, even an address correction or the addition or change of a
school. The first correction is labeled “02,” and subsequent corrections are labeled “03,”
“04,” and so forth. Identifying the correct transaction is important when reporting Pell
Grant payments and when requesting duplicate ISIRs or SARs. A duplicate will always
be generated from the most recent transaction (the one with the highest transaction
number) unless another, earlier transaction is specified.

New for 2002–2003, the maximum number of transactions that an applicant may have is
30; when a student has corrected or updated information more than 10 times, the student
will receive SAR comment 106, advising him or her to seek assistance from the financial
aid administrator.

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Highlights and Assumptions

Paper System Highlights and Assumptions

Students are instructed to review information on the SAR carefully for accuracy. Items
requiring special attention are “highlighted” by printing them in boldface type. Both the
student and FAA need to pay careful attention to questions and responses that are
highlighted.

During the edit process, the CPS applies logic in comparing two or more pieces of
information provided by the student. The CPS highlights information that is conflicting,
missing, or contradictory. Items that are questioned are highlighted on the SAR.

In certain instances the application is rejected because of a conflict—for example, the

student answered that he or she is not married but provides financial information for a
spouse. The CPS will reject this application (Reject 11) and print the questioned items in
boldface type on the SAR. The CPS will not calculate an EFC, because key financial
information is conflicting.

In other situations, the CPS makes an “assumption” and does not reject the student’s
record. For example, a student reports that he or she is married and provides spouse’s
income, but reports only one person in the househo ld. In this case, the CPS assumes
there are two persons in the household, highlights both questions and responses on the
SAR, and calculates an EFC if the record is not rejected for other reasons. Both the
reported and the assumed values are printed, with the word “ASSUMED” in parentheses
next to the assumed response that was used in the EFC calculation.

Assumptions are most often made by the CPS when questions are left blank. Once an
answer is assumed, the assumed information is used throughout all the subsequent edits
and in the EFC calculation.

If the CPS makes an assumption, but then rejects the record for other reasons, an EFC is
not calculated and the assumed values are not used. In this situation, the student receives
a SAR with arrows printed next to the questionable line items. The student is then
required to correct them.

Electronic System Highlights and Assumptions

All SFA application software that is used to submit application data contains certain edits
that prompt users to resolve inconsistencies before sending the information to the CPS.
These edits are contained in the EDExpress, FAFSA on the Web, Renewal FAFSA on the
Web, and Corrections on the Web applications. When inconsistencies or missing data
would cause the record to be rejected at the CPS, the software does not allow the record
to be completed or transmitted until information is changed or added. However, when
these inconsistencies would cause an assumption, the user is prompted to review and
change the data, but will be allowed to transmit the record

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even if a change is not made. The ISIR that a school receives will include a flag for each
highlighted field and will set an “h,” for highlight, next to the items on which
assumptions were made on the printed ISIR.

In the EDExpress software, an FAA can override certain assumptions that would be made
at the CPS. When an FAA sets an override code on an electronic application, the CPS
accepts the data as reported and does not make an assumption about that item. For
example, if a student indicates more than six family members are attending college, the
CPS would assume “one” person in college during processing. If, in fact, there are more
than six family members attending college, the FAA can eliminate the need for a
correction by setting the appropriate override flag in the EDExpress software.

In addition, EDExpress allows the FAA to override certain “verifiable rejects” by setting
a reject override flag before transmitting the student’s application. For example, a
student may have an unusually large number of family members. If the FAA sets the
appropriate override flag before sending the student’s record, the student’s record will not
be rejected. Students who are using FAFSA on the Web or Renewal FAFSA on the Web
will be able to set the assumption and reject overrides described on the previous page by
confirming the data that they have entered.

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2002–2003 Federal Application Processing System

Paper and Electronic (Non-Web) Processes

EDExpress Paper Process

Student (spouse, parents) completes Student (spouse, parents)

a paper FAFSA or Renewal FAFSA, completes a paper FAFSA or
or provides school with acceptable makes corrections to a paper
documents for corrections. SAR.
Student mails document to the
FAFSA Processor.

Destination Point (school or

servicer) enters and transmits
application or correction data and
FAFSA Processor enters and
signature flag to the CPS.
transmits application or
correction data and signature
flag to the CPS.

CPS edits data from all sources, performs matches, calculates EFC, prints and
mails SAR or SAR Information Acknowledgement to students. CPS transmits
processed data (ISIRs) to schools, servicers, and state agencies.

Paper process:
EDExpress:
Student receives SAR.
Student receives SAR Information
Acknowledgement.
Schools, servicers, and state
Schools, servicers, and state agencies agencies receive ISIRs.
receive ISIRs.

Student may submit SAR or SAR

Acknowledgement to school if school
is not listed on application. However,
school must take action to ensure
school is added to student’s record so
that school receives electronic ISIR.

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2002–2003 Federal Application Processing System

Web Process
FAFSA on the Web Renewal FAFSA/Corrections on the Web

Student (spouse, parents) Student or parent applies for PIN at the FAFSA on the Web
completes the application address. Student or parent receives a PIN by mail or by e-
online, transmits the data mail. PIN from prior year can also be used. PINs are
directly to the CPS. Student automatically sent to previous Web filers and graduate
(and parent) must provide students.
electronic signature or send
paper signature to the FAFSA
Processor to complete the
process. Student accesses Renewal FAFSA or Corrections on
the Web, with PIN. Student updates/completes the
application online.

Dependent Student: Independent

Transmits data to the Student: Transmits data to the
CPS. PIN serves as CPS. PIN serves as electronic
electronic signature signature.
for student and parent.
Paper signature still
available to parents.

FAFSA Processor receives Signature Page from students

using FAFSA on the Web, and from dependent students
using Renewal FAFSA or Corrections on the Web.
Processor enters and transmits signature flag to the CPS.

CPS receives Web transmission, edits data, performs matches, calculates EFC, and prints and
mails SAR Acknowledgement if all signatures have been received, or SAR if rejected for missing
signatures. CPS transmits processed data (ISIRs) to schools, servicers, and state agencies.

Renewal FAFSA on the Web/Corrections on the Web:

FAFSA on the Web:
1) Independent student receives SAR Acknowledgement
or SOTW e-mail.
1) If Signature Page received and processed
2) Dependent student receives SAR Acknowledgement or
within 14 days, student receives SAR
SOTW e-mail if parent PIN used or if parent Paper
Acknowledgement.
Signature Page is received and processed within 14 days.
2) If Signature Page not received within 14
3) Dependent student receives Rejected SAR (for parent
days, student receives Rejected SAR.
signature) if parent does not use PIN and Paper Signature
Page is not received within 14 days.
Schools, servicers, and state agencies receive
ISIRs.
Schools, servicers, and state agencies receive ISIRs.

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II. ISIR DATA

Schools will receive ISIRs for all students who listed that institution on their FAFSA,
Renewal FAFSA, FAFSA on the Web, Renewal FAFSA on the Web, Corrections on the
Web, or SAR. More than 7,000 post-secondary institutions participate in some aspect of
the Electronic Data Exchange (EDE). These institutions can send application and
correction data from the school or through a servicer (either one is called a “destination
point”) and receive processed student records (ISIRs) at the destination point.

Appendix H contains an example print format for the ISIR. Student and FAA
information will print out on two pages, with an additional page for NSLDS Financial
Aid History. Schools do not need to print hardcopy ISIRs; however, in this guide we will
use the print format as a tool to discuss the codes that appear on the ISIR record.

The student’s processed application information appears on the printout of an electronic

ISIR in a two-column, two-page format with an abbreviated version of each FAFSA
question on the left and the student’s response on the right. Information is divided into
sections like the FAFSA sections, e.g., Step One: The Student. Questions are not
numbered individually, but each section heading identifies the range of FAFSA questions
included.

ISIR Office Information

In the section titled Office Information, the following information appears:

DRN
Primary EFC Type
Secondary EFC Type
Processed Date
Application Source
ISIR Transaction Type
Source of Correction
Federal School Code Indicator
Reject Override Codes
Assumption Override Codes

The student’s DRN (Data Release Number) will appear in this section only for a
transaction type of “0” when the school receiving the ISIR also entered the student’s
application or renewal application data. The DRN will not appear on an ISIR in other
situations.

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The Primary and Secondary EFC Type code tells an FAA which formula was used to
calculate the EFC.
1 Full Needs Test: dependent
2 Full Needs Test: independent without dependents
3 Full Needs Test: independent with dependents
4 Simplified Needs Test: dependent
5 Simplified Needs Test: independent without dependents
6 Simplified Needs Test: independent with dependents

Processed Date is the date this transaction was processed at the CPS.

Application Source identifies a FAFSA processor or other source of the application.

1 Electronic Application (EDE)
5 MDE/ACT (American College Testing)
6 FAFSA/Renewal FAFSA on the Web

ISIR Transaction Type identifies the source of the transaction.

0 Electronic original application
1 Automatic ISIR generated
2 Electronic correction
3 Electronic duplicate request

Source of Correction Flag is a field that is set on each correction transaction and indicates
what the source of the correction was.
A Correction was generated by the Applicant
D Correction was generated by the CPS
S Correction was generated by a School

The Federal School Code Indicator verifies the identity of the originating institution.
“Reject” and “Assumption” Override Codes appear because the EDExpress software
allows an FAA to override certain rejects that are designated as “verifiable” rejects. It
also allows an FAA to override certain assumptions that the CPS would make about a
student ’s data when the information appears to be inconsistent. The Office Information
section on the ISIR shows which Reject Override Codes and which Assumption Override
Codes were set on the transaction.

ISIR FAA Information

The FAA information section displays every relevant piece of information about a
student’s eligibility in one place. On the ISIR, FAA information is printed on the second
page following the summary of application data and is labeled “FAA Information.”
Descriptive labels are intended to help the FAA identify reject codes, match flags,
intermediate values, and so forth.

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Using the printed ISIR format as a basis, here are identifications for the codes and flags
that appear as FAA information.

Date ISIR Received

This is the date the ISIR record was received at your institution.

Verification Flag
The Verification Flag indicates if a student has been selected for verification on any
transaction.
Y Selected for verification
N Not selected for verification
* Selected for verification on a subsequent transaction

Verification Tracking Flag

The Verification Tracking Flag indicates if a student has been selected for verification on
any transaction.
Blank Not selected
A or B Selected for verification
01 to 33 Selected for verification

System-Generated Indicator
These codes identify a system-generated transaction that was initiated by the CPS, rather
than resulting from an application or correction sent to the CPS. The codes show why a
record was automatically generated by the CPS.
Blank Not a system- generated SAR
A Applicant released from drug abuse hold file
D Duplicate request and drug abuse status has changed
I INS Secondary Confirmation completed
L Duplicate request and NSLDS match data have changed
N NSLDS postscreening transaction
P Prisoner match postscreening transaction
Z Reprocessed transaction

ISIRs for system- generated transactions will be sent to schools in a separate electronic
message class.

FAA Adjustment Flag

This flag indicates that a transaction resulted from a professio nal judgement adjustment
requested by an FAA.
Blank No adjustment processed
1 (Y) FAA adjustment processed
2 (F) FAA adjustment attempted but failed

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When an FAA uses professional judgement to change a data item on a SAR or ISIR, only
the school that made the change will receive the new ISIR transaction.

Transaction Receipt Date

The date appearing in this position is the date that the FAFSA processor or the CPS
received the input information that generated the transaction. The receipt date for the
first application will be a fixed date; the transaction receipt date, however, will change
each time a new transaction is generated. For example, a student sends in a Renewal
Application that is received by the FAFSA processor on March 13, 2002. This first
transaction SAR and ISIR would have an Application Receipt Date and a Transaction
Receipt Date of March 13, 2002. If the student then mails in a SAR with corrections and
it is received on April 17, the 02 transaction would show an Application Receipt Date of
March 13, 2002 and a Transaction Receipt Date of April 17, 2002.

Reprocessing Code
This code provides information about batches of records that are reprocessed by the CPS
for any reason. When the SYS GEN flag is set to “Z,” this position will contain a two-
digit number, beginning with “01” and incrementing each time a group of records is
reprocessed. Check the IFAP Web site (http://ifap.ed.gov) for announcements that will
define the reason associated with a particular two-digit number.

Processed Record Type

This code distinguishes an application from a correction that was made to a prior or
existing transaction.
Blank Original Application (from any source)
C Correction Application
H Correction (from any source) or Duplicate

Early Analysis Flag

Using FAFSA on the Web, a student may indicate that he or she is applying for early
admission for the 2003–2004 school year. The software sets a flag on the student’s
record that appears in the FAA information area. The early analysis indicator will appear
on the SAR and the ISIR, but not on the SAR Information Acknowledgement. Please
note that the early analysis flag does not invalidate the SAR—it simply notifies the
school that a student checked the early analysis box on a FAFSA on the Web application.
If the student actually enrolls for the 2003–2004 school year, the early analysis record
may be used for that school year. The early analysis flag may be corrected to blank using
EDExpress.
Blank Not an early analysis student
Y Student indicated early analysis on FAFSA on the Web

Rejects Met
Up to seven reject reason codes can be printed in this position. Refer to Appendix A for
the reject reason codes and the comment numbers associated with certain types of rejects.

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Dependency Override
This flag identifies a record that resulted from an application or correction on which a
dependency override request was made by an FAA. Initial applications allow overrides
to be made in one direction only: from dependent to independent. The SAR and
EDExpress allow an FAA to cancel a previous override.
Blank No dependency override
1 (Y) FAA override from dependent to independent
2 (N) Dependency override cancelled
3 (F) FAA override attempted but failed

When an FAA performs a dependency override, only the school that submitted the
override will receive the new ISIR transaction.

Duplicate Request
This flag indicates if this transaction is a result of a duplicate request.
Blank Not a duplicate SAR
D Requested as a duplicate copy

Correction # Applied To
This field only applies to transactions greater than 01 and indicates which prior
transaction the correction was applied against. For example, if you are looking at an 03
transaction and the Correction # Applied To field is 02, that means that corrections were
made against the 02 transaction to create the 03 transaction.

Application Receipt Date

This date shows the date the paper application was received by the FAFSA processor, or
the date an electronic FAFSA transmission was received by the school in EDExpress or
entered by the applicant in one of the electronic products.

Input Record Type

This identifies the type of input that produced the transaction.
Blank Original Application (paper or electronic)
R Renewal FAFSA
C Correction Application
H Correction (paper or electronic)
D Duplicate Request
S FAFSA on the Web Signature Pages

Paid EFC Type

This identifies which EFC, primary or secondary, was placed in Paid EFC.
P Primary
S Secondary

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Pell Eligible Flag

This flag alerts schools to an applicant's Pell Grant eligibility status. A “Y” confirms that
a student’s EFC and undergraduate status makes him or her eligible for a Pell Grant, and
that the record has been included in the payment system database.
Blank Not eligible for a Pell Grant
Y Eligible for a Pell Grant

If a student who is an undergraduate incorrectly reported on the FAFSA that he or she

will be a graduate student or has a bachelor’s degree, this information must be corrected.
Otherwise, he or she will be considered ineligible for a Pell Grant and the school will be
unable to receive Pell funds for that student.

Primary and Secondary EFCs/Alternate EFCs

The ISIR FAA Information section contains the headings “Months,” “Primary EFC,” and
“Secondary EFC.” If both a Primary and a Secondary EFC appear, it means the student
qualified for the Simplified Needs Test (SNT) but also provided information about assets.
Two calculations were performed, producing the Primary EFC (asset information was not
included in the calculation) and the Secondary EFC (asset information was included in a
full-data calculation). If only a Primary EFC appears, it means either 1) the student did
not meet the Simplified Needs Test criteria and only the full-data calculation was done,
or 2) the student met the SNT criteria and provided no asset information, or provided
incomplete or inconsistent asset information and only one calculation could be
performed.

The figures printed for each of the twelve months represent alternate EFCs that an FAA
must use to award aid—other than Federal Pell Grants—for an academic year that is less
than or greater than nine months. For a dependent student, the alternate EFCs are
calculated by the CPS according to a formula prescribed in the law. For the independent
student, the CPS calculates a simple proration of the EFC by month for less than nine
month enrollment.

Intermediate Values
These abbreviations represent the intermediate steps used in calculating the EFC. They
show the separate components of the need analysis formula, such as the “employment
expense allowance” or “parents’ contribution from assets.” These components are
defined in the law. The values can be useful to FAAs in doing recalculations or in
making professional judgement adjustments to data items.

The intermediate values are identified as follows:

TI Total Income
ATI Allowances Against Total Income
STX State and Other Tax Allowance
EA Employment Allowance
IPA Income Protection Allowance

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AI Available Income
CAI Contribution from Available Income (Independent Student)
DNW Discretionary Net Worth
NW Net Worth
APA Education Savings and Asset Protection Allowance
PCA Parents’ Contribution from Assets
AAI Adjusted Available Income
TSC Total Student’s Contribution
TPC Total Parents’ Contribution
PC Parents’ Contribution
STI Student’s Total Income
SATI Student’s Allowance Against Total Income
SIC Dependent Student’s Income Contribution
SDNW Student’s Discretionary Net Worth
SCA Dependent Student's Contribution from Assets
FTI FISAP Total Income

More information on the need analysis formula and methodology for calculating the EFC
is available in the 2002–2003 SFA Handbook: Student Eligibility.

Auto Zero EFC Flag

An applicant who meets certain tax filing and income criteria will qualify automatically
for an expected family contribution (EFC) figure of “0.” When these criteria are met, the
CPS assigns a “0” EFC and does not perform a full calculation except for Total Income,
Student’s Total Income, and FISAP Total Income. Only these three intermediate values
will appear in the FAA Information section.
Blank Does not meet criteria
Y Student meets automatic zero EFC criteria

EFC Change Flag

This flag indicates whether the EFC has increased or decreased between a correction
transaction and the transaction to which the correction was applied.
1 EFC increased
2 EFC decreased
Blank No change

SNT Flag
This flag gives information about the Simplified Needs Test (SNT), which excludes asset
information from the EFC calculation. It is performed if an applicant meets certain
criteria for tax filing status and income level.

Y SNT was met

N SNT was not met or could not be determined

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Duplicate SSN Flag

This flag is set to Yes if another record was found on the CPS database with the same
SSN but a different last name.

Subsequent App Flag

This flag indicates a transaction that resulted when a second, or subsequent, application
for the same student was processed. Except for address and school choices, the data on
the SAR or ISIR generated by a subsequent application will be the same data the student
submitted on the previous application. If a different address and different school choices
are provided, the new information will appear in these fields on the new transaction.
Blank Not a subsequent application
Y Second or later application

Match Flags
These alpha or numeric codes show the results of matching the applicant record with
databases containing information that can affect eligibility. A detailed discussion about
the flags or codes that will appear in the FAA Information section for the SSN Match
Flag, SSA Citizenship Code, INS Match Flag, SSA Prisoner Match Flag, Selective
Service Match Flag, NSLDS Match Flag, VA Match Flag, INS Secondary Confirmation
Match Flag, Selective Service Registration Flag, and NSLDS Database Results Flag can
be found in Appendix B.

The INS Verification Number also appears under the “Match Flags” heading of FAA
Information. The number that will appear in this position is a 15-digit confirmation
number that the INS returns when a match was conducted. The FAA must use this
number when secondary confirmation is necessary.

The NSLDS Transaction Number appears at the end of the match flag section. Although
it is not a true match flag, we provide the number of the last transaction on which the
student’s NSLDS data changed as a signal to the financial aid administrator to review
NSLDS information on a particular transaction.

The NSLDS Database Results Flag is also at the end of the match flag section. Each
record sent to NSLDS will be returned with an NSLDS Results Flag set to one of the
following values:
1 = Match was found and NSLDS data sent to CPS
2 = SSN match but name or DOB did not match
3 = No match found
4 = Match was found but no NSLDS data sent to CPS

Comment Codes
The last line in the FAA information section shows the codes for comments generated on
the record that are important to the FAA. Standard comments to the student are not
included here. FAAs can review the comment codes and not have to read through every

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comment provided on the SAR to find information that may require FAA action. Up to
20 comment codes may be printed.

The EDExpress software allows comment text to be printed, if desired. All comment
codes and text used in 2002–2003 are provided on both the Student Financial Assistance
(SFA) Web site located at SFAdownload.ed.gov and the IFAP Web site at ifap.ed.gov.
Also, see the IFAP announcement dated November 9, 2001, at
http://www.ifap.ed.gov/eannouncements/1109isircodes.html.

NSLDS Financial Aid History

Flags (Upper Section)

The flags at the top of the Financial Aid History page will display a value of either “Y”
for Yes or “N” for No. The Overpayment flag may also display a value of “S” when
satisfactory repayment arrangements have been made. The Contact field for each
Overpayment flag will display a school code (OPEID), ED Debt Collection Service
Region code, N/A (when no overpayments exists), or “Access NSLDS” if there is more
than one overpayment for a specific aid type (Pell, FSEOG, Perkins).

The Discharged loan flag reflects the status of any loan discharged due to disability or
death. If this flag is present, the “C” flag is set on the SAR/ISIR and a comment will be
given.

The Defaulted Loans flag will be set when any loans exist in a defaulted status.

The Loan Satisfactory Repayment Arrangements flag reflects the status of loans with a
“DX” or “XD” (Defaulted, satisfactory arrangements made including six consecutive
monthly payments). If this flag is set to “Y,” a comment will be included on the ISIR
informing the school of that status, but no “C” flag will be set.

Although Postscreening Reason Codes are now two bytes, codes 01–05 remain the same.
Reasons 06–10 have been added.

NSLDS Postscreening
For 2002–2003, we have expanded our postscreening codes, which helps schools identify
any student whose eligibility for federal student aid may have changed subsequent to the
last time a SAR/ISIR transaction was produced. To find cases where a student’s
eligibility status has changed, NSLDS will periodically scan its database.

The five new postscreening codes that have been added are: (06) a loan was discharged,
(07) a loan went out of discharged status, (08) student has a loan for a closed school, (09)
student has exceeded subsidized loan limit, and (10) student has exceeded combined loan
limit. In addition, the “Other” category has been changed to (99).

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Also, note that all codes have been changed from one to two bytes; for example, (1)
becomes (01). The following list of codes, which are the substantially the same as last
year’s, reflects this change: the student (01) entered default on a Title IV loan that was
previously not in default, (02) became obligated for a new overpayment of a Title IV
grant or loan, (03) cleared a previously reported default of a Title IV loan, (04) cleared an
overpayment obligatio n of a previously reported Title IV grant or loan, or (05) had a
change made to Master Promissory Note status.

When any of these situations occurs, the CPS system generates a new SAR/ISIR
transaction that includes, as part of the NSLDS Financial Aid History section, the
changed information. (Students who are eligible will receive a SOTW e- mail instead of a
paper SAR for system- generated transactions.) These transactions include a “system-
generated” flag of “N” (for “NSLDS”) and a special SAR/ISIR comment (comment 004)
that informs the student and the school that a change in NSLDS is being reported that
may affect the student’s eligibility for Title IV aid. A separate message class is used for
system- generated ISIRs, including those produced as a result of NSLDS postscreening.
A Postscreening Reason Code is included in the top section of the Financial Aid History
page. If the transaction is system generated as a result of postscreening, a numeric value
is displayed in this field. Values 1–10 correspond to the situations described above, and a
code of 99 is used for any other data changes that generate the transaction. Schools must
act on the updated information they receive regarding a change in a student’s eligibility
for Title IV aid and must ensure that a student remains eligible for payment; otherwise,
the school will be liable for improperly disbursed funds.

Please note that the status changes reported on a 2002–2003 ISIR may have a bearing on
eligibility for payments to the student during the 2001–2002 award year.

If the school has already disbursed funds to a student who is found to be ineligible, the
school must contact the student to make arrangements for repayment. If the student has
received an FFEL loan, the school must notify the lender. If the student has received a
Federal Direct Loan, the school must notify the Direct Loan servicer.

Please refer to the Federal Student Aid Handbook for 2002–2003, Dear Colleague Letter
GEN-96-13, and Dear Colleague Letter GEN-98-6 for additional discussion of NSLDS
information and applicable school requirements.

Aggregate Amounts for FFELP/Direct Loans and Perkins Loan Section

This section includes information on Subsidized Loans, Unsubsidized Loans, and
Combined Loans fields that reflects the total amount of subsidized and unsubsidized
loans the student has borrowed.

The FFEL Consolidation Loans field only includes amounts of FFEL Consolidation
Loans. Direct Consolidation Loan amounts are reported in the Subsidized, Unsubsidized,
and Combined fields.

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The Outstanding Principal Balance and Current Year Loan Amount for Perkins Loans are
included in this section. For all Direct Loans and FFELP loans in an out-of-school status
or originated more than a year ago, the Aggregate Outstanding Principal Balance amount
is determined by comparing the Net Loan amount, Disbursed amount, and Outstanding
Principal Balance for each student loan and including the lesser of these amounts for each
loan.

For FFELP loans in an in-school or in- grace status originated in the past year, the
Aggregate Outstanding Principal Balance amount is determined by taking the greater of
the Disbursed Amount or the Outstanding Principal Balance, but not to exceed the Net
Loan amount (that is, Loan Amount less Amount Cancelled). If the Net Loan amount is
higher, then the Net Loan amount is used.

For Direct Loans in an in-school status and originated in the past year, Pending
Disbursements are calculated by subtracting Total Disbursed from the Net Loan amount.
For FFELP loans in an in-school status and originated in the past year, Pending
Disbursements are calculated by subtracting the Aggregate Outstanding Principal
Balance from the Net Loan amount. If the Aggregate Outstanding Principal Balance is
greater than the Net Loan amount, zero is used. Pending Disbursements are not
calculated for any Direct or FFELP loan in an out-of-school status or originated more
than a year ago.

Pell Payment Data Section

Pell Grant data shows current award year (2002–2003) payment information as reported
by schools to Common Origination and Disbursement (COD). Information for up to
three schools is displayed. This information includes: School Code, Transaction
Number, Scheduled Award Amount, Award Amount, Disbursed Amount, Remaining
Amount To Be Paid, Percent Scheduled Used, As Of (the disbursement date), Pell
Verification Flag, and EFC. A message instructing the school to access NSLDS for
additional Pell Grant data will display when the student has more than three payment
records for the award year.

Loan Detail Section

The information appearing for each loan in the Loan Detail section is as follows: Loan
Type, Net Loan Amount, Loan Begin Date, Loan End Date, GA Code, School Code,
Grade Level, Contact, Contact Type, Additional Unsubsidized Loans, Loan Type,
Capitalized Interest, Date of Last Disbursement, Amount of Last Disbursement, Current
Status Code, Current Loan Status Date, Outstanding Principal Balance, and Outstanding
Principal Balance Date. If there is no information to report, “N/A” is displayed. If a loan
is in default, the loan status code is in bold on the SAR. Flags for Additional
Unsubsidized Loans and Capitalized Interest may also display for a loan record. When
an additional Unsubsidized Loan has been awarded, one of the following reason codes
will display: P = PLUS loan denial, H = Health Profession, B = both, N = neither.
Capitalized interest will show as either Yes or No.

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The Loan Detail section has been modified to display up to six open loans (including
Perkins Loans). The loans are chosen with regard to their current loan status. Defaulted
loans will appear first, followed by discharged loans. Other loans will follow, sorted by
“Loan Begin Date.” If there are more than 6 loans on the database, a message to “Access
NSLDS” for additional information will be displayed.

A “Contact Type” is included for each loan. The contents of the Contact Type field will
be “SCH” for School, “LEN” for Lender, “DLS” for Direct Loan Servicer, “EDR” for
ED Region, “GA” for Guaranty Agenc y, or “N/A” for not applicable. Information about
whom to contact for each loan in a default status will be included in the comment text.
“MPN Information” is located at the end of the Loan Detail section to identify whether a
student has a Master Promissory Note for Direct Loans. The MPN information will show
an MPN as Active, Inactive, Closed, or None. The FFEL MPN field was removed.

Changes to NSLDS Data Since Previous Prescreening

An indicator informs schools where NSLDS information provided on a SAR/ISIR has
changed since the last CPS transaction. A “#” sign prints in front of the status field for
Overpayments, Defaulted Loans, Discharged Loans, Loan Satisfactory Repayment
Arrangements, or Active Bankruptcy if there has been a change in that status since the
last CPS transaction.

The “#” sign also prints in front of the Aggregate Amount for FFELP/Direct Loans,
Perkins Loans, or the 2002–2003 Pell Payment Data sections when information within
that section has changed since the last CPS transaction. Finally, a “#” sign prints in front
of each reported loan in the Loan Detail section when there has been a change to some
field related to that loan since the last CPS transaction.

Additional ISIR Data

In addition to the information described above that is printed on the hardcopy ISIR, we
will explain here two ISIR fields not printed on the EDExpress ISIR: Field Correction
flags and Verification Tracking flags.

Field Correction Flags

The ISIR record contains a Correction Flag for each field on the FAFSA/SAR. These
flags are set to a value of 0 if the field has never been corrected. The flag is set to a value
of 1 if the field is corrected on the current transaction. A value of 2 indicates that the
field was corrected on a previous transaction. These fields can be used to identify either
the fields that were corrected on an individual transaction, or all fields that have ever
been corrected by an applicant.

Verification Tracking Flags

The Verification Tracking Flag will provide the priority order for verifying students. The
priority order is A and B, 1 through 33. If schools are not verifying all applicant records
selected by CPS, we would like schools to start verifying students in priority order based

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on the selection criteria that indicates the student is more likely to have incorrect data on
his or her record. For example, you would verify all students selected for verification
with a tracking flag of A before you verify students selected with a tracking flag of B.

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III. CORRECTIONS AND UPDATES

The first steps in the application process are sending a student’s application information
into the Central Processing System (CPS) and receiving that student’s processed
application data back from the system. When data must be updated, under the limited
circumstances allowed by regulation, or must be corrected, additional steps are required.

In EDExpress, changes (corrections or updating) can be made to any student’s record

regardless of whether it originally entered the system as a paper or an electronic
application. Both updates and corrections are referred to as correction transactions. The
electronic correction process requires that signed correction documentation be maintained
by the school that inputs the new information. Documentation can be a paper SAR or
other documents such as tax returns, a verification worksheet, or a change-of-address
form. The FAA enters the changes on the EDExpress screen, transmits them to the CPS,
and receives an ISIR containing the new processed data. In this situation, when the input
is electronic, the student receives a SAR Information Acknowledgement.

The SAR is a vehicle for corrections in the paper system, or for students who file using
FAFSA on the Web or Corrections on the Web and (1) are rejected for lack of signatures,
and (2) do not have a SSN Matching Flag of 4. Students may use the SAR to correct and
update their application information, and mail the SAR to the FAFSA processor for data
entry.

All other students receive either a SAR Acknowledgement or a SOTW e-mail. Using
their PIN (see page 7), these students should make their corrections electronically
through Corrections on the Web.

After the corrections are processed, the student receives a new SAR if the corrections
were made using a paper SAR, or a SAR Information Acknowledgement or a SOTW e-
mail if the corrections were made using Corrections on the Web. In all cases, the school
receives an ISIR.

As mentioned previously, when corrections need to be made to data reported on the SAR
Information Acknowledgement, the student may have corrections transmitted
electronically through EDExpress at a school, the student may request a duplicate SAR
and send corrections or updates to the FAFSA processor using the SAR, or the student
may make the corrections using Corrections on the Web.

SAR Corrections
The “YOU TOLD US” column on the SAR shows a shortened version of each numbered
item that corresponds to a question on the FAFSA, and has printed beneath it the
student’s response to that question. The second column, “WRITE IN INFORMATION
FOR NEW OR CORRECTED ITEMS ONLY” has boxes and ovals that resemble the

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answer fields on the FAFSA, and allows the student to indicate or write in a corrected
answer, if necessary.

Items that are highlighted (printed in boldface type) require special attention.
Highlighting means the CPS identified the responses as questionable or inconsistent with
other answers. The CPS may assume answers to certain questions by comparing them
with other information on the application. Answers might be assumed when the question
was left blank, or a positive number might be assumed when the answer to an income
question was given as a negative number.

When the CPS assumes an answer, both the value reported by the applicant and the
assumed value are printed on the SAR. The word “ASSUMED” will appear in
parentheses with the assumed value. Assumed values are used by the CPS in performing
the calculation and should always be reviewed carefully. If the assumed values are
correct, the student does not need to change them on the SAR.

Fields that show assumed values or that trigger certain edits are identified on the ISIR.
The fields will have an “h” printed next to the questioned item and the assumed items are
designated with an asterisk (i.e., *). The student can always correct other items, if
necessary, whether or not they are highlighted.

If the record has been rejected, an arrow will print in the “YOU TOLD US” column
pointing to the response field for the questioned item. This indicates that the student
must provide a new answer because the original response was blank or illegible, and the
item is necessary to perform an EFC calculation. The student may also correct other
items, if necessary, even if they are not highlighted.

At the top of the SAR are instructions to the student explaining the meaning of the
arrows, and the proper way to verify an answer, fill in an oval, or to delete an answer. To
verify a previously reported answer, the student must rewrite the same value in the
answer fields and return the SAR.

Sometimes students are caught in a reject “loop” because they don’t respond to all of the
highlighted and arrowed items to turn off the reject, or because they provide new
information that the edit check still considers to be inconsistent or questionable.

Parent Information for Independent Students

The SARs for dependent students and for independent students contain exactly the same
sections and numbered items as the FAFSA. Parent information will be printed in the
parent section for an independent student if the student provided it on the FAFSA,
although the EFC calculation will not include parent data. Students in certain health
profession programs are advised that they may have to provide parental data, because the
data are required by many health profession schools to award Title VII aid. Parental data

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provided by independent students will not be subject to any edits, but the data will appear
on the SAR and on ISIRs and be carried forward on all transactions.

Parental data are always required for dependent students and will be edited and used in
the EFC calculation.

Signatures for SAR Corrections

On the last page of the SAR, a message in the left column shows the address where SAR
corrections should be mailed.

In the right column of the same page, the student is asked to certify that any corrections
made on the SAR are accurate and complete. This statement must be signed by the
student. For a dependent student, one parent must also sign.

Reject 16 SARs—Signatures and Certifications

SARs with Reject 16 are mailed to students who submitted their applications via FAFSA
on the Web, but did not follow up with a signed Signature/Certification Page, or the page
was incomplete and could not be processed. If the record indicates that a printer was not
available to the student, the CPS processes the application immediately and mails a
Reject 16 SAR. If the record indicates that a printer was available, the CPS holds the
transmission for up to 14 calendar days while waiting for a Signature Page. If a signature
is not received in 14 days, the CPS processes the record and sends a Reject 16 SAR. A
Reject 16 SAR will not have a calculated EFC and will contain the full Certification
Statement that appears on the FAFSA.

To receive an EFC calculation, the student must sign the SAR and return it to the FAFSA
processor’s address indicated on the SAR. The student can also make other corrections
to the Reject 16 SAR at the same time, if necessary. By signing and returning the
certification statement along with the application data, the student completes the
application process.

Note that Reject 16 may appear with other rejects or highlighted data requiring correction
or verification.
A student who has a PIN may also sign his or her record electronically on the Web as
well as make other corrections using Corrections on the Web. As another option, schools
may obtain the necessary documentation and submit the student signature using the
EDExpress software.

Reject 15 SARs—Renewal FAFSA on the Web

As explained in 2002–2003 Action Letter #1 (GEN-01-10), students who receive a paper
Renewal FAFSA from the Department may be able to apply using Renewal FAFSA on
the Web. A student must reside at the address that is currently in the applicant database
to request a PIN at the Department’s Web site: http://www.pin.ed.gov. With the PIN, a
student may access his or her 2001–2002 application information, respond to the required

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Renewal FAFSA questions, update or correct any of the previous information, and
transmit the 2002–2003 Renewal Application over the Web.

For an independent student, the PIN serves as signature and certification, eliminating the
need to print and mail a signature page to complete the application process. For a
dependent student, the PIN serves as the student’s signature and certification, but the
parents must also provide a parent’s signature, either on a Signature Page or
electronically with a PIN, to complete the process.

If a printer is available, the dependent student may print out a Signature Page, obtain the
parent’s signature, and mail it to the processor. The transmitted application is held up to
14 days while waiting for a Signature Page. If a signature is not received in 14 days, the
CPS processes the record and sends a Reject 15 SAR (Reject 15 is used when the parent
signature is required, but missing from an application or SAR). The dependent student’s
parent must sign and return the Reject 15 SAR to comple te the process for Renewal
FAFSA on the Web.

If a printer is not available, the student will indicate this on the electronic transmission.
The CPS will process the record immediately and send a Reject 15 SAR.

Reject 14 SARs
SARs with Reject 14 will be mailed to students who submitted paper FAFSAs or SARs
without a student signature. To receive an EFC calculation, the student must sign the
SAR and return it to the FAFSA processor’s address indicated on the SAR. The student
can also make other corrections to the Reject 14 SAR at the same time, if necessary. By
signing and returning the certification statement along with the application data, the
student completes the application process.

Note that Reject 14 may appear with other rejects or highlighted data requiring correction
or verification.

A student who has a PIN may sign his or her record electronically on the Web as well as
make other corrections using Corrections on the Web. As another option, schools may
obtain the necessary documentation and submit the student signature using the
EDExpress software.

School Code Corrections

There are a number of ways students can correct the school codes listed on their record to
replace, add, or remove additional schools. On the SAR, the student can correct any of
the six school code fields and the new code will be added in the position in which it was
entered on the SAR. If the student chooses a position that already has a school code in it,
the previous code will be replaced by the new school code. The school with the previous
code that was removed will not receive ISIRs for the student. The same results will occur
if the school correction is made using EDExpress or if the request is made over the

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telephone through the Federal Student Aid Information Center. However, if the
correction is made using EDExpress, the processing system will not process a change that
will eliminate the school that transmitted the correction from the student’s record.

If the student makes a school code change by writing a letter and sending it to the FAFSA
processor, only the schools listed on the letter will appear on the resulting SAR/ISIR. All
of the previous schools will be deleted.

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