Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 37

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 37
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 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.

2

ED published a notice of proposed rulemaking on public service loan forgiveness
on August 18, 2025, and published the final regulations on October 31, 2025 with an effective date of July 1, 2026. The regulations include
provisions that, among other things, amend components of the public service loan forgiveness program. We are currently evaluating these
recently published regulations to determine any potential material impact on our business and schools.

On July 24, 2025, ED announced it intended to establish
two negotiated rulemaking committees: one that will consider changes to the federal student loan programs and one that will consider institutional
and programmatic accountability, changes to the Pell Grant Program and other matters. The rulemaking is intended to implement recent changes
to the Title IV, HEA programs included in the One Big Beautiful Bill Act (“OBBBA”). See Annual Report at Form 10-K “Education
Regulations – Congressional Action.”

The first of the two negotiated rulemaking committees
(the RISE Committee) convened for one session in October and one session in November. On November 6, 2025, the RISE Committee reached
consensus on proposed regulations related to topics including, for example, new federal student loan borrowing limits for certain borrowers
and educational programs (including reduced limits on PLUS loans taken out by parent borrowers for undergraduate students) and reductions
in federal student loan limits for students who are enrolled as less than full-time students. The agreed upon language will be incorporated
into a notice of proposed rulemaking, which is expected to be released in January 2026 and will undergo a period of public notice and
comment before ED makes any amendments and publishes the final regulations. It is expected that the new regulations will go into effect
on July 1, 2026 along with the relevant changes in the OBBBA which become effective on that date. We cannot predict the timing and content
of the final regulations, but we are currently evaluating the potential impact of the proposed regulations on the Company and are continuing
to monitor the ongoing rulemaking process.

The second of the two