Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 94

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 date
of July 1, 2026. The final regulations cover topics including calculating the date a student withdrew from the institution, refunds for
clock hour programs, refunds for modules, and refunds for students who do not begin attendance at the school or who withdraw from school.
The final regulations also add a definition of “distance education course” and require reporting related to student enrollment
in distance education courses, but did not include other distance education proposals such as attendance requirements for distance education
programs.

There
are indications based on the recent elections that the new administration, and potentially the U.S. Congress, will attempt to dissolve
ED, diminish its operational role, and/or transfer some or all of its functions to one or more agencies. We continue to monitor developments
in this area, but cannot yet predict whether the administration or Congress will be successful in implementing such a proposal or whether
such a proposal would disrupt or change the availability of Title IV funds to us and our students or change the rules applicable to us
and our schools to continue receiving Title IV funds. 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.

We
cannot predict with certainty the ultimate combined impact of the regulatory changes which have occurred in recent years, nor can we
predict the effect of future legislative or regulatory action by federal, state or other agencies regulating our education programs or
other aspects of our operations, how any resulting regulations will be interpreted or whether we and our institutions will be able to
comply with these requirements in the future. Any such actions by legislative or regulatory bodies that affect our programs and operations
could have a material adverse effect on us and our student population and our institutions, including the need to cease offering a number
of programs.

90/10
Rule

Under
the HEA, a proprietary institution that derives more than 90% of its total revenue from the Title IV Programs or, for fiscal years beginning
on or after January 1, 2023, from all federal educational assistance funds, for two consecutive fiscal years becomes immediately ineligible
to participate in the Title IV Programs and may not reapply for eligibility until the end of at least two fiscal years (“90/10
Rule”). An institution whose receipts of applicable funds exceeds 90% of revenue for a single fiscal year will be placed on provisional
certification, be required to notify ED and its students of the possibility of a loss of Title IV