Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 416

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 416
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 that the proceeds were used to pay expenses permitted by the PPP, including payroll costs, covered rent, mortgage obligations
and covered utility payments. We submitted a request for full forgiveness to the lender, with the expectation that the PPP Loan would
be forgiven in full. As a result, during the period ended June 30, 2020, we recorded the full amount of the PPP Loan received as other
income. We received forgiveness in full of the PPP Loan during the fiscal year ended June 30, 2021.

The
CARES Act also contained separate educational provisions that relieved both institutions and students from complying with the requirement
to return certain Title IV Program funds following a student’s withdrawal as a result of the COVID-19 emergency. Ordinarily, when
a student withdraws, the institution (and, in some cases, the student) may be required to return unearned portions of the Title IV Program
funds awarded for the period. Institutions are required to report to ED the total amount of grant and loan funds the institution has
not returned due to the waiver. For federal loan borrowers, the CARES Act also directed ED to cancel the borrower’s obligation
to repay any direct loan associated with the relevant period. The law also expanded the options to avoid student withdrawals due to a
cessation of attendance by placing students on an approved leave of absence and waives certain requirements normally applicable to a
leave of absence. The CARES Act also allowed institutions to exclude from the calculation of a student’s satisfactory academic
progress any attempted credits not completed due to the COVID-19 emergency.

On
December 27, 2020, Congress enacted the Consolidated Appropriations Act, 2021. This annual appropriations bill contained the Coronavirus
Response and Relief Supplemental Appropriations Act, 2021 (“CRRSAA”). CRRSAA provided an additional $81.9 billion to the
Education Stabilization Fund including $22.7 billion for HEERF, which were originally created by the CARES Act in March 2020. The higher
education provisions of the CRRSAA were intended in part to provide additional financial assistance benefitting students and their postsecondary
institutions in the wake of the spread of COVID-19 across the country and its impact on higher educational institutions.

Like
the CARES Act, the CRRSAA directed the majority of HEERF funds to a general program providing direct grants to institutions. Institutions
generally were required to designate “at least