What the changes say
- Federal loan borrowing limits beginning July 2026 could reduce students’ ability to finance programs and lower enrollment.
- Repayment resumed after 2020, creating renewed cohort-default-rate risk despite 0% 2022 rates at every institution.
- A newly authorized $100 million repurchase program could reduce cash and increase share-price volatility without improving long-term value.
- The section emphasizes broader accountability, accreditation, compliance, outreach, and federal-funding risks affecting program availability and enrollment.
What changed since the prior 10-K
New
- NewRisks Related to the Highly Regulated Field in Which We Operate
For more information, see Item 1, “Business – Student Financial Aid and Related Federal Regulation” for more information on changes to federal student aid programs
Compliance reviews, audits, and legal requirements could cause major penalties, operating restrictions, loss of financial aid, or institution closure.
- NewRisks Related to the Highly Regulated Field in Which We Operate
burdens and operational complexity related to our business. See Item 1, “Business - Accreditation, State Regulation and Other Compliance Matters - State Regulation,” for more information about state regulation and SARA
Regulatory changes could force costly operational changes, program eliminations, lower enrollment and profitability, or fundamental business changes.
- NewRisks Related to the Highly Regulated Field in Which We Operate
"Business - Student Financial Aid and Related Federal Regulation - Eligibility and Certification by the Department," for more information
Loss of specialized accreditation, especially for health sciences programs, could hurt licensure and employment prospects, enrollment, and program viability.
- NewRisks Related to the Highly Regulated Field in Which We Operate
Recent changes to federal student loan programs that reduce annual, aggregate, and lifetime borrowing limits may limit students’ ability to finance their education and materially reduce enrollments
New federal annual, aggregate, and lifetime loan limits beginning July 2026 could reduce financing, delay enrollment, shift students to costlier funding, or increase withdrawals.
- NewRisks Related to the Highly Regulated Field in Which We Operate
Elevated cohort default rates could result in operational restrictions or loss of Title IV eligibility and materially adversely affect our business
Rising cohort default rates after loan repayment resumed could trigger delayed disbursements, default-prevention requirements, or loss of Title IV eligibility.
- NewRisks Related to Our Business
Our use of artificial intelligence may subject us to increased compliance obligations and legal risk
AI use may create compliance and legal exposure, while robocall rules and call-blocking technology hinder outreach to prospective students.
- NewRisk Related to Our Common Stock
We cannot guarantee that our share repurchase program will be utilized to the full value approved or that it will enhance long-term stockholder value. Repurchases we consummate could increase the volatility of the price of our common stock and could have a negative impact on our available cash balance
The authorized $100 million repurchase program may not be used, could reduce cash and increase volatility, and may not enhance long-term value.
Dropped
- DroppedRisks Related to the Highly Regulated Field in Which We Operate
See “GE and FVT Negotiated Rulemaking” above for information about the timeline of the GE and FVT rules. Given the recent challenges associated with implementation of the rules, we have concerns with the accuracy and effectiveness of the GE and FVT metrics
- DroppedRisks Related to the Highly Regulated Field in Which We Operate
The ability of our institutions to comply with the 90-10 Rule will depend upon the composition of our future student population and their personal circumstances, as well as on regulatory changes and other factors outside of our control, including those cited above
- DroppedRisks Related to Our Business
uncertain. Any future changes in federal and state laws and regulations, as well as the interpretation and implementation of such laws and regulations, could affect us in substantial and unpredictable ways
Gainful Employment and Financial Value Transparency metrics, including possible Title IV loss and implementation uncertainty.
- DroppedRisks Related to Our Business Technology Infrastructure
information or personal information about our students or employees, cause interruptions or malfunctions in our operations or commit fraud. We have experienced malware and virus attacks on our systems which went undetected by our virus detection and prevention software
Reworded
- 100% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
If our institutions become ineligible to participate in various educational assistance programs, it could have a material negative impact on student enrollments and could have other adverse consequences
The risk now covers employer, Department of Defense, and Veterans Affairs benefits, emphasizing separate eligibility, approval delays, limitations, and adverse determinations.
- 100% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
Accountability regulations may subject us to significant disclosures and limitations, including program closures, which could materially reduce the enrollments and revenue at our institutions and negatively impact our future growth
The discussion broadens from the Biden-era D/E and EP tests to warnings, restrictions, closures, statutory earnings premiums, and a proposed single GE measure.
Was: “Gainful Employment” regulations may subject us to significant disclosures and limitations, including program closures, which could materially reduce the enrollments and revenue at our institutions and negatively impact our future growth
- 90% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
See Item 1, “Business – Student Financial Aid and Related Federal Regulation -- Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations” above for an overview of the current rules relating to Borrower Defense to Repayment
The risk now specifically highlights repayment liability for discharged loans and possible letters of credit or other financial protections restricting liquidity.
Was: See the “Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations” above for an overview of the current rules relating to Borrower Defense to Repayment
- 84% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
The extensive and evolving regulatory requirements applicable to our business may change, in particular as a result of the scrutiny of the for-profit postsecondary education sector, which could require us to make substantial changes to our business, reduce our profitability and make compliance more difficult
The risk now includes federal, state, and accreditor requirements, retroactive or differing interpretations, agency-leadership changes, and expanded regulatory examples.
Was: The extensive regulatory requirements applicable to our business may change, in particular as a result of the scrutiny of the for-profit postsecondary education sector which could require us to make substantial changes to our business, reduce our profitability and make compliance more difficult
- 83% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
Our institutions could lose their eligibility to participate in federal student financial aid programs, face significant limitations on their ability to serve new or former students or have other limitations placed upon them if the percentage of their revenues derived from certain federal programs is too high
The description now specifies that 90-10 counts Title IV, Defense military tuition assistance, and Veterans Affairs benefits, with ineligibility for at least two years.
Was: Our institutions could lose their eligibility to participate in federal student financial aid programs, face limitations on their ability to serve new or former students or have other limitations placed upon them if the percentage of their revenues derived from certain federal programs is too high
- 73% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
Our institutions would lose their ability to participate in Title IV Programs if they fail to maintain their institutional accreditation, and our student enrollments could decline if certain of our programs fail to obtain or maintain programmatic accreditation
The risk adds probation and other specific adverse accreditation actions while retaining potential Title IV loss and enrollment effects.
- 68% rewrittenRisks Related to Our Business Technology Infrastructure
The personal information that we collect may be vulnerable to breach, theft, or loss, any of which could adversely affect our reputation, operations, and ability to attract and retain students
The wording is materially unchanged and continues to describe increasingly sophisticated cyberattacks against company, vendor, and external-agency systems.
- 68% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
See Item 1, “Business – Student Financial Aid and Related Federal Regulation – Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations - ‘90-10 Rule,'” for more information about the 90-10 Rule and the measures we have implemented to improve our compliance
The update retains dramatic revenue loss from 90-10 violations but emphasizes future compliance costs, reduced revenue, and adverse financial-condition and operating-results effects.
- 53% rewrittenRisks Related to Our Business
Congress, the Department and other agencies have required increasing disclosure of information to prospective students (with some disclosures only required by for-profit institutions). Some of these disclosures may negatively impact a prospective student’s decision to enroll in one of our institutions
- 50% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
As a provider of postsecondary education and a participant in federal and state programs providing financial assistance to students, we are subject to extensive laws and regulations at both the federal and state levels, as well as by accrediting agencies. These requirements cover virtually all aspects of our business
Was: As a provider of postsecondary education and a participant in federal and state programs providing financial assistance to students, we are subject to extensive laws and regulation at both the federal and state levels as well as by accrediting agencies. These requirements cover virtually all aspects of our business
- 39% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
We are dependent on the recertification and maintenance of Title IV Programs
- 29% rewrittenRisks Related to Our Business Technology Infrastructure
Our primarily remote work environment may exacerbate the risks related to our business technology infrastructure
- 28% rewrittenRisks Related to the Highly Regulated Field in Which We Operate
If the Department denies, or significantly conditions, recertification of any of our institutions to participate in Title IV Programs, that institution could not operate its business as it is currently conducted
Was: If the Department denies, or significantly conditions, recertification of any of our institutions to participate in Title IV Programs, that institution could not conduct its business as it is currently conducted
- 25% rewrittenRisk Related to Our Common Stock
The trading price of our common stock may continue to fluctuate substantially in the future, as a result of which returns on an investment in our common stock may be volatile
Was: The trading price of our common stock may continue to fluctuate substantially in the future, and as a result returns on an investment in our common stock may be volatile
- 21% rewrittenRisks Related to Our Business
Our financial performance depends on student enrollment levels in our institutions
Was: Our financial performance depends on the level of student enrollments in our institutions
- 21% rewrittenRisks Related to Our Business
We compete with a variety of educational institutions, especially in the online education market, and if we are unable to compete effectively, our student enrollments and revenue could be adversely impacted
All 39 risk factors
Headings as the filing states them, in filing order.
Risks Related to the Highly Regulated Field in Which We Operate
- 01As a provider of postsecondary education and a participant in federal and state programs providing financial assistance to students, we are subject to extensive laws and regulations at both the federal and state levels, as well as by accrediting agencies. These requirements cover virtually all aspects of our business50% rewritten
- 02For more information, see Item 1, “Business – Student Financial Aid and Related Federal Regulation” for more information on changes to federal student aid programsNew
- 03Accountability regulations may subject us to significant disclosures and limitations, including program closures, which could materially reduce the enrollments and revenue at our institutions and negatively impact our future growth100% rewritten
- 04Our institutions could lose their eligibility to participate in federal student financial aid programs, face significant limitations on their ability to serve new or former students or have other limitations placed upon them if the percentage of their revenues derived from certain federal programs is too high83% rewritten
- 05See Item 1, “Business – Student Financial Aid and Related Federal Regulation – Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations - ‘90-10 Rule,'” for more information about the 90-10 Rule and the measures we have implemented to improve our compliance68% rewritten
- 06The extensive and evolving regulatory requirements applicable to our business may change, in particular as a result of the scrutiny of the for-profit postsecondary education sector, which could require us to make substantial changes to our business, reduce our profitability and make compliance more difficult84% rewritten
- 07burdens and operational complexity related to our business. See Item 1, “Business - Accreditation, State Regulation and Other Compliance Matters - State Regulation,” for more information about state regulation and SARANew
- 08A failure to demonstrate "financial responsibility," "administrative capability" or meet new "certification" requirements would have negative impacts on our operations
- 09See Item 1, “Business – Student Financial Aid and Related Federal Regulation -- Compliance with Federal Regulatory Standards and Effect of Federal Regulatory Violations” above for an overview of the current rules relating to Borrower Defense to Repayment90% rewritten
- 10Our institutions would lose their ability to participate in Title IV Programs if they fail to maintain their institutional accreditation, and our student enrollments could decline if certain of our programs fail to obtain or maintain programmatic accreditation73% rewritten
- 11"Business - Student Financial Aid and Related Federal Regulation - Eligibility and Certification by the Department," for more informationNew
- 12Recent changes to federal student loan programs that reduce annual, aggregate, and lifetime borrowing limits may limit students’ ability to finance their education and materially reduce enrollmentsNew
- 13Elevated cohort default rates could result in operational restrictions or loss of Title IV eligibility and materially adversely affect our businessNew
- 14If our institutions fail to maintain adequate systems and processes to detect and prevent fraudulent activity in student enrollment and financial aid, our institutions may lose the ability to participate in Title IV Programs or have participation in these programs conditioned or limited
- 15Our agreement with the FTC may lead to unexpected impacts on our student enrollments or higher than anticipated expenses. A failure to comply with the agreement may lead to additional enforcement actions and continued scrutiny, which may result in additional costs or new enforcement actions
- 16If we are unable to successfully resolve pending or future litigation and regulatory and governmental inquiries, or face increased regulatory actions or litigation, our financial condition and results of operations could be adversely affected
- 17Even if we maintain compliance with applicable governmental and accrediting body regulations, increased regulatory scrutiny or adverse publicity arising from allegations of non-compliance may increase our costs of regulatory compliance and adversely affect our financial results, growth rates and prospects
- 18If the Department denies, or significantly conditions, recertification of any of our institutions to participate in Title IV Programs, that institution could not operate its business as it is currently conducted28% rewritten
- 19We are dependent on the recertification and maintenance of Title IV Programs39% rewritten
- 20We need timely approval by applicable regulatory agencies to offer new programs or make substantive changes to existing programs
- 21If our institutions become ineligible to participate in various educational assistance programs, it could have a material negative impact on student enrollments and could have other adverse consequences100% rewritten
Risks Related to Our Business
- 22Our financial performance depends on student enrollment levels in our institutions21% rewritten
- 23We compete with a variety of educational institutions, especially in the online education market, and if we are unable to compete effectively, our student enrollments and revenue could be adversely impacted21% rewritten
- 24Congress, the Department and other agencies have required increasing disclosure of information to prospective students (with some disclosures only required by for-profit institutions). Some of these disclosures may negatively impact a prospective student’s decision to enroll in one of our institutions53% rewritten
- 25Our financial performance depends on our ability to develop awareness among, and enroll and retain, students in our institutions and their programs in a cost-effective manner
- 26We may not be able to retain our key personnel or hire, train and retain the personnel we need to sustain and grow our business
- 27Our financial performance depends, in part, on our ability to keep pace with changing market needs and technology
- 28Our use of artificial intelligence may subject us to increased compliance obligations and legal riskNew
- 29Our future results of operations could be materially adversely affected if we are required to write down the carrying value of non-financial assets and non-financial liabilities, such as goodwill
- 30We rely on proprietary rights and intellectual property in conducting our business, which may not be adequately protected under current laws, and we may encounter disputes from time to time relating to our use of the intellectual property of third parties
- 31Our corporate engagement programs have contributed to student enrollment growth through 2025. If we fail to enter new corporate engagements or if existing corporate partners pause or reduce participation in their tuition assistance programs, our total student enrollments may suffer
- 32The acquisition, integration, and growth of acquired businesses may present challenges that could harm our business
- 33Natural disasters or other extraordinary events may cause us to close some of our schools or suffer casualty losses
Risks Related to Our Business Technology Infrastructure
- 34The personal information that we collect may be vulnerable to breach, theft, or loss, any of which could adversely affect our reputation, operations, and ability to attract and retain students68% rewritten
- 35Our primarily remote work environment may exacerbate the risks related to our business technology infrastructure29% rewritten
Risk Related to Our Common Stock
- 36The trading price of our common stock may continue to fluctuate substantially in the future, as a result of which returns on an investment in our common stock may be volatile25% rewritten
- 37price and volume fluctuations in the overall stock market, which may cause the market price for our common stock to fluctuate significantly more than the market as a whole
- 38Shareholders may not receive the level of dividends previously provided under the dividend policy our Board of Directors has adopted, or any dividends at all
- 39We cannot guarantee that our share repurchase program will be utilized to the full value approved or that it will enhance long-term stockholder value. Repurchases we consummate could increase the volatility of the price of our common stock and could have a negative impact on our available cash balanceNew
Other Perdoceo Education 10-Ks
- FY2024 10-K risk factors36 risks
Heavy reliance on Title IV federal student financial aid and related regulatory compliance dominates risk exposure.
Filed Feb 18, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.