Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 93

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 will
continue to disburse federal student loans and Pell Grants and that the FAFSA will continue to be processed.

The federal government shutdown also has impacted
other agencies from which our students receive funding. See Annual Report at Form 10-K “Education Regulations – Other Financial
Assistance Programs.” The U.S. Department of Veterans Affairs (“VA”) has announced that the Veterans Benefits Administration
will continue to process education benefit claims and pay out veterans’ education benefits during the shutdown.

On
November 12, 2025, Congress passed a bill subsequently signed by the President ending the federal government shutdown. We cannot
predict the duration of any future federal government shutdown, nor can we predict the extent to which such shutdowns could disrupt funding
to us and our students from the Title IV programs and other federal financial assistance programs or disrupt services from ED or other
federal agencies upon which our institutions and our students depend.

Financial Value Transparency and Gainful Employment
Regulations

On May 19, 2023, ED published a notice of proposed
rulemaking on financial value transparency and gainful employment, and on October 10, 2023, ED published final regulations which became
effective on July 1, 2024. Multiple lawsuits were filed challenging these regulations, and these were consolidated into one case in the
U.S. District Court for the Northern District of Texas. See Annual Report at Form 10-K “Education Regulations - Financial Value
Transparency and Gainful Employment Regulations.” ED subsequently filed a motion for summary judgment, which was granted by the
court on October 2, 2025, upholding the validity of the regulations. The regulations will apply to us unless they are challenged successfully
in future litigation such as if the plaintiffs appeal the summary judgment ruling and the Fifth Circuit Court of Appeals decides in their
favor. However, we cannot predict whether the plaintiffs will appeal, nor can we predict the outcome of such appeal.

Moreover, the regulations are subject to further amendment
by ED. As noted above, ED established a negotiated rulemaking committee that is scheduled to meet in December 2025 and January 2026 to
consider topics such as financial value transparency and gainful employment as well as separate accountability measures under OBBBA related
to the potential loss of Direct Loan eligibility for certain degree programs with low earnings outcomes for two out of three years. See
“Regulatory Updates – Negotiated Rulemaking;” see also Annual Report at Form 10-K “Education Regulations –
Congressional