Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 41

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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, ED conducted negotiated rulemaking to prepare proposed regulations on a variety of topics including but not
limited to cash management, state authorization, distance education, return of Title IV, and accreditation. In December 2024, ED announced
that it terminated its negotiated rulemaking process with respect to state authorization, accreditation, and cash management. ED could
initiate additional negotiated rulemaking on a variety of topics in the future. ED could also publish new or revised guidance in the
future on a variety of topics that could subject us to additional requirements. We cannot predict the ultimate timing, content, and impact
of any regulations and guidance ED might propose and ultimately adopt.

On
July 24, 2024, ED published proposed regulations to the Federal Register related to return of Title IV calculations and distance education.
On January 3, 2025, ED published final regulations pertaining to returns of Title IV Program funds, which have a general effective 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
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