Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 355

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 355
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 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 address in future
regulations. Under the new accountability measure, an associate degree program would lose its Title IV loan eligibility if the
median earnings of a cohort of graduates are less than the median earnings of working adults with a high school diploma and no
further degrees for two out of three years. ED will create a process for appealing the programmatic median earnings data.
Institutions that do not meet the accountability measure for one year will also be required to notify students of the risk of losing
eligibility. Our institutions offer a limited number of associate degree programs that will be subject to the new accountability
measure. We cannot yet predict with certainty whether our degree programs will meet the accountability measure or whether they will
be at risk of losing eligibility to participate in the Title IV loan programs.

The
OBBBA also restricts student eligibility for the Pell Grant by disqualifying students with a student aid index that equals or exceeds
twice the amount of the total maximum Pell Grant, and disqualifying students who receive grant aid from non-federal sources that equals
or exceeds the student’s cost of attendance for that period. We are evaluating whether and to what extent this change might impact
the Pell eligibility of some of our students and whether alternative sources of financial aid, such as third-party loans, might be necessary
for these students. The OBBBA also establishes Workforce Pell Grants for eligible students enrolled in certain short-term educational
programs that meet eligibility requirements. The eligibility requirements include criteria related to the program’s length and
a determination of eligibility by the state. Many of our programs are longer than the eligibility requirements, but we are evaluating
whether opportunities exist for other current or future programs at our institutions.

50

Additionally,
the OBBBA delays the effective date of the 2022 version of the revised borrower defense to repayment regulations and closed school loan
discharge regulations for ten years, until July 1, 2035. See “Education Regulations - Borrower Defense to Repayment Regulations.”

Congressional
committees and members actively continue to propose and consider legislation on a wide range of topics related to the Title IV programs
that could impact further the amount of Title IV funding available to schools and students and impose additional accountability requirements
on institutions and