Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 24

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 24
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 institution of higher education a borrower
may assert as a defense to repayment of certain Title IV Program loans; (ii) procedures for adjudicating borrower defense claims, and
(iii) prohibiting the use of mandatory pre-dispute arbitration clauses and class action waivers in enrollment agreements and requiring
disclosures of judicial and arbitration filings and awards pertaining to a borrower defense claim.

Among
other things, the revised 2022 version of the BDR regulations also amended the processes for borrowers to receive from ED a discharge
of the obligation to repay certain Title IV Program loans when the BDR applications are received on or after, or pending with ED as of
July 1, 2023. The revised 2022 version of the BDR regulations applies the revised federal BDR standard to all BDR claims received on
or after, or pending with the Secretary as of July 1, 2023, but would not allow for recovery against institutions for discharged amounts
first disbursed prior to July 1, 2023 unless the BDR claim would have been approved under the substantive BDR standard applicable to
the time period in which the loan was disbursed as set forth in the prior versions of the BDR regulations. The defenses to repayment
are based on certain acts or omissions, including misrepresentations by an institution or a covered party. The regulations establish
detailed procedures and standards for the loan discharge processes, including the information required for borrowers to receive a loan
discharge, and the authority of ED to seek recovery from the institution of the amount of discharged loans. The 2022 version of the revised
BDR regulations were to take effect on July 1, 2023, in addition to certain closed school loan discharge provisions part of the same
rule, but are currently enjoined and delayed. The Career Colleges and Schools of Texas (“CCST”) filed a complaint challenging
the regulations in February 2023. In April 2024, the U.S. Court of Appeals for the Fifth Circuit granted a preliminary injunction to
block enforcement of the revised 2022 version of the BDR regulations while the case is pending. Further, the OBBBA, enacted July 4, 2025,
delays the effective date of the 2022 version of the revised BDR regulations for ten years, until July 1, 2035. Therefore, the amendments
to the BDR regulations that were to take effect on July 1, 2023 are not in effect, but