Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 19

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 19
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 Act of 2021 (“ARPA”) was signed into law in March 2021 and included,
among other things, a provision that amended the 90/10 Rule in the HEA. See “Risk Factors - Our institutions could lose their
eligibility to participate in the Title IV programs if the percentage of their revenues derived from applicable federal educational student
aid programs is too high.” If we cannot comply with the provisions of the HEA, as they may be enforced or amended, or if the
cost of such compliance is excessive, or if funding is materially reduced, our revenues or profit margin could be materially adversely
affected.

More
recently, on July 4, 2025, the President signed into law the One Big Beautiful Bill Act (“OBBBA”), which has a general effective
date of July 1, 2026 and makes changes to the HEA, including the Title IV programs. ED intends to conduct a negotiated rulemaking process
in 2025 for the purpose of establishing new regulations impacting the new OBBBA requirements. See “Education Regulations –
Negotiated Rulemaking.” Consequently, we expect the new requirements will impact our institutions and operations, but we cannot
predict the ultimate scope, content, and impact of the new OBBBA requirements under future ED regulations and guidance. We are currently
assessing, and will continue to assess, the potential impact of the requirements on us and our institutions. Among other things, the
OBBBA establishes limits on the amount of Title IV loans students and parents can borrow. These limits will not apply to students that
will be enrolled as of the effective date, up until their expected time of completion as defined by the OBBBA. The OBBBA establishes
a limit of $20,000 annually and $65,000 in total for PLUS loans taken out by parent borrowers for undergraduate programs. The OBBBA also
creates a lifetime loan limit of $257,500 for all borrowers. It also requires institutions to prorate loans for students attending less
than full-time. We are in the process of evaluating the impact these loan limitations may have on our institutions and enrollments and
the extent to which alternative sources of funding such as third-party loans may be needed for some of our students.

The
OBBBA also establishes a new accountability measure that applies to our degree programs and that is based on a comparison of
graduate earnings to the earnings of working adults without degrees under a complex formula that ED is expected to