Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 115

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 115
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 and other federal financial assistance.

68

States
that provide financial aid to our students face budgetary constraints, which in certain instances has reduced the level of state financial
aid available to our students. Due to state budgetary shortfalls and constraints in certain states in which we operate, the overall level
of state financial aid for our students could decrease in the near term, but we cannot predict how significant any such reductions will
be or how long they will last. Federal budgetary shortfalls and constraints, or decisions by federal lawmakers to limit or prohibit access
by our institutions or their students to federal financial aid, could result in a decrease in the level of federal financial aid for
our students.

Under
the WIOA, institutions currently must report data regarding credential attainment rates, job placement rates and other information and
may be required to meet negotiated performance goals set by the state agency administering WIOA funds. Members of Congress have made
proposals to reauthorize WIOA but no reauthorization bills have been passed. If passed, proposals to reauthorize WIOA that increase requirements
or impose penalties could impact our schools.

If
our participating institutions and their programs were to not meet other WIOA requirements, they would risk losing eligibility to participate
in the program. Further, reauthorization of the WIOA could result in changes to the process for determining funding for its programs,
which could affect our institutions’ revenues.

In
addition to the Title IV Programs and other government-administered programs, all our schools participate in alternative loan
programs for their students. Alternative loans fill the gap between what the student receives from all financial aid sources and
what the student may need to cover the full cost of his or her education. We also extend credit for tuition and fees to students
that attend our campuses. We are required to comply with applicable federal and state laws related to certain consumer and
educational loans and credit extensions and education financing and are subject to review by federal and state agencies responsible
for overseeing compliance with these requirements. Our failure to comply with these requirements could result in repayment
liabilities, sanctions, investigations or litigation which could impact our results of operations.

On
January 20, 2022, the CFPB announced its intent to examine the operations of postsecondary schools that extend private loans directly
to students. Accompanying this announcement was an update to the CFPB’s Examination Procedures to now require CFPB examiners to
review several aspects of educational loans including enrollment