Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 357

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 357
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 rules applicable to us and our schools to continue
receiving Title IV funds. We also cannot predict the success of any litigation challenging any efforts to close or restructure ED. Any
executive or legislative action impacting ED, the availability of Title IV funds, or the rules applicable to us could have a material
adverse effect on us and our institutions.

Additional
ED or other rulemaking could materially and adversely affect our operations, business, results of operations, financial condition and
cash flows.

ED
has promulgated a substantial number of new regulations in recent years that impact our business, including, but not limited to, the
“borrower defense to repayment” regulations discussed in the risk factors below, as well as rules regarding compensation
for persons engaged in certain aspects of admissions and financial aid, state authorization, clock and credit hours, prohibitions on
“substantial misrepresentations,” gainful employment, certification procedures, financial responsibility, administrative
capability, ability to benefit, closed school loan discharges, the 90/10 Rule, changes in ownership, Title IX, cash management, return
of Title IV funds, distance education, accreditation and other topics. These and other regulations have had significant impacts on our
business, requiring a large number of reporting and operational changes and resulting in changes to and elimination of certain educational
programs.

51

On
July 24, 2025, ED announced it intends to establish two negotiated rulemaking committees: one that will consider changes to the federal
student loan programs and one that will consider institutional and programmatic accountability, including changes to the Pell Grant.
The rulemaking is intended to implement recent changes to the Title IV, HEA programs included in the OBBBA. See “Education Regulations
– Congressional Action.” 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 and to monitor the negotiated rulemaking
process.

On
April 4, 2025, ED announced its intention to conduct negotiated rulemaking to prepare proposed regulations on topics pertaining to Title
IV regulations, potentially including Public Service Loan Forgiveness, loan repayment programs, and “streamlining” current
federal student financial assistance regulations. ED held public hearings to discuss the rulemaking agenda on April 29, 2025 and May
1,