Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 146

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 146
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, 2025, and is awaiting approval.

3

If
agencies require us to obtain other approvals in connection with the CCMCC Transaction, we will be required to undergo an application
process for approvals from the applicable agencies and could be subject to conditions or restrictions (or loss of approval) depending
on the outcome of the approval process. 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 “Education Regulations – Negotiated Rulemaking.”

On
April 4, 2025, ED announced its intention to conduct negotiated rulemaking to prepare proposed regulations on topics pertaining to Title
IV regulations, potentially including Public Service Loan Forgiveness, loan repayment programs, and “streamlining” current
federal student financial assistance regulations. ED held public hearings to discuss the rulemaking agenda on April 29, 2025 and May
1, 2025 and requested comments on rulemaking topics be submitted by May 5, 2025. ED has not yet provided a complete list of topics for
which it may propose regulations or the full schedule for negotiating and publishing final regulations. Consequently, we cannot predict
the ultimate timing, content, and impact of any regulations and guidance ED might propose and ultimately adopt. In addition, the President
directed federal agencies on April 9, 2025 to identify existing regulations that are unlawful or otherwise objectionable and to take
steps to repeal or modify these regulations. We cannot predict what rules ED might attempt to repeal or modify, the timing and outcome
of these efforts, or the impact of any regulatory repeals of modifications on our business and schools.

Congressional