Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 353

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 353
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 IV Programs is dependent on ED continuing to recognize the accrediting
agencies that accredit our colleges and universities. Each of our institutions currently are accredited by an ED- recognized accrediting
agency. The standards and practices of these agencies have become a focus of attention by state attorneys general, members of Congress,
ED’s Office of Inspector General and ED over recent years. ED held negotiated rulemaking sessions between January and March 2024,
and the negotiators did not reach consensus on proposed language. ED terminated the negotiated rulemaking process for accreditation as
of December 20, 2024. However, ED published a proposed regulatory agenda in early September 2025 that, among other things, includes a
proposal to engage in negotiated rulemaking to provide institutions flexibility to change accreditors and “remove other burdensome
requirements that erect barriers to entry for new accreditation agencies.” This proposal is in its early stages and, therefore,
we cannot predict whether and how such a rulemaking would impact the accreditors that accredit our institutions or the accreditation
requirements applicable to our institutions.

If
ED withdraws recognition from ACCET and/or ABHES, ED may continue our schools’ eligibility for a period of up to 18 months from
the date of the withdrawal of recognition, and our schools could apply for accreditation from other ED-recognized accrediting agencies.
ED could impose provisional certification and other conditions and restrictions on our schools during this period. If ACCET and/or ABHES
lose recognition from ED and our schools are unable to obtain accreditation from a different ED-recognized accrediting agency in the
required time period, our schools could lose eligibility to participate in Title IV Programs.

49

Congress
may revise the laws governing the Title IV Programs or reduce funding for those programs which could reduce our enrollment and revenue
and increase costs of operations.

The
U.S. Congress must periodically reauthorize the HEA and other laws governing the Title IV Programs and annually determine the funding
level for each Title IV Program, and may pass new laws or revise existing laws at any time. Political and budgetary concerns significantly
affect the Title IV Programs. We cannot predict when or whether Congress will consider or vote on legislation to reauthorize the HEA
or to create new laws or revise existing laws. Furthermore, we cannot predict with any certainty the outcome of the HEA reauthorization
process nor the extent to which any legislation that Congress could adopt at any time could materially affect our business, financial
condition and results of operations.