Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 354

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 354
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 Current requirements for student or school participation in Title IV Programs may change or one
or more of the present Title IV Programs could be replaced by other programs with materially different student or school eligibility
requirements. For example, the American Rescue Plan Act of 2021 (“ARPA”) was signed into law in March 2021 and included,
among other things, a provision that amended the 90/10 Rule (as defined herein) in the HEA. See “Risk Factors - Our institutions
could lose their eligibility to participate in the Title IV programs if the percentage of their revenues derived from applicable federal
educational student aid programs is too high.” If we cannot comply with the provisions of the HEA, as they may be enforced
or amended, or if the cost of such compliance is excessive, or if funding is materially reduced, our revenues or profit margin could
be materially adversely affected.

More
recently, on July 4, 2025, the President signed into law the One Big Beautiful Bill Act (“OBBBA”), which has a general effective
date of July 1, 2026 and makes changes to the HEA, including the Title IV programs. ED intends to conduct a negotiated rulemaking process
in 2025 for the purpose of establishing new regulations impacting the new OBBBA requirements. See “Education Regulations –
Negotiated Rulemaking.” Consequently, we expect the new requirements will impact our institutions and operations, but we cannot
predict the ultimate scope, content, and impact of the new OBBBA requirements under future ED regulations and guidance. We are currently
assessing, and will continue to assess, the potential impact of the requirements on us and our institutions.

Among
other things, the OBBBA establishes limits on the amount of Title IV loans students and parents can borrow. These limits will not apply
to students that will be enrolled as of the effective date, up until their expected time of completion as defined by the OBBBA. The OBBBA
establishes a limit of $20,000 annually and $65,000 in total for PLUS loans taken out by parent borrowers for undergraduate programs.
The OBBBA also creates a lifetime loan limit of $257,500 for all borrowers. It also requires institutions to prorate loans for students
attending less than full-time. We are in the process of evaluating the impact these loan limitations may have on our institutions and
enrollments and the extent to which alternative sources of funding such as third-party loans