Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 93

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 to make or obtain notices and/or approvals prior to the CCMCC
Transaction from those agencies that require notice and/or approval to be made or obtained prior to the occurrence of a change in
ownership or control. If any applicable agencies determine that we did not follow required procedures in providing notification and seeking approval of the CCMCC Transaction, or
if any agencies do not approve the CCMCC Transaction, we could be subject to sanctions by the applicable agencies including loss of
CCMCC’s approvals from these agencies.

Negotiated
Rulemaking

ED
has promulgated a substantial number of new regulations in recent years that impact our business on a broad range of topics that 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. Future regulatory actions by ED or other agencies that regulate our institutions are likely
to occur and to have significant impacts on our business, require us to change our business practices and incur costs of compliance and
of developing and implementing changes in operations, as has been the case with past regulatory changes. See Annual Report at Form 10-K
at “Negotiated Rulemaking.”

In
October through December 2023, ED conducted negotiated rulemaking to develop new regulations related to student debt relief. ED published
proposed regulations on this topic on April 17, 2024, and October 31, 2024. However, ED subsequently withdrew these proposed regulations
effective December 20, 2024.

In
January through March 2024, 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