Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 140

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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 committees
(the RISE Committee) convened for one session in October and one session in November. On November 6, 2025, the RISE Committee reached
consensus on proposed regulations related to topics including, for example, new federal student loan borrowing limits for certain borrowers
and educational programs (including reduced limits on PLUS loans taken out by parent borrowers for undergraduate students) and reductions
in federal student loan limits for students who are enrolled as less than full-time students. The agreed upon language will be incorporated
into a notice of proposed rulemaking, which is expected to be released in January 2026 and will undergo a period of public notice and
comment before ED makes any amendments and publishes the final regulations. It is expected that the new regulations will go into effect
on July 1, 2026 along with the relevant changes in the OBBBA which become effective on that date. We cannot predict the timing and content
of the final regulations, but we are currently evaluating the potential impact of the proposed regulations on the Company and are continuing
to monitor the ongoing rulemaking process.

The second of the two negotiated rulemaking committees
(the AHEAD Committee) is scheduled to meet in December 2025 and January 2026 and to consider new regulations on issues such as institutional
and programmatic accountability measures (including the financial value transparency and gainful employment regulations and the accountability
measures in the OBBBA) and changes to the Pell Grant Program.

We expect the new regulations that are expected to
emerge from the RISE and AHEAD Committees will impact our institutions and operations, but we cannot predict the ultimate scope, content,
and impact of the future ED regulations and guidance including any regulations further implementing the new OBBBA requirements. We are
currently assessing, and will continue to assess, the potential impact of the new and proposed requirements on us and our institutions
and to monitor the ongoing negotiated rulemaking process. We also 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 educational 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 our student population and our institutions, including
the need to cease offering a number of