Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 34

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 34
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 institution or entity
    included in financial statements is subject to adverse or impermissible conditions under a financing arrangement as a result of ED
    action;

    ●
    the institution declares
    financial exigency to government agency or accrediting agency;

    ●
    the institution or an owner
    files for a receivership or is ordered to appoint a receiver.

ED
also may determine that an institution lacks financial responsibility if one or more of the following discretionary triggering events
occurs and the event is likely to have a significant adverse effect on the financial condition of the institution:

    ●
    a show cause or similar
    order from the institution’s accrediting agency or a government authority;

    ●
    a notice from the institution’s
    state authorizing or licensing agency of an intent to withdraw or terminate the institution’s state authorization or licensure
    if the institution does not take steps to comply with state requirements;

    ●
    the institution (or an
    owner entity covered by the regulation) is subject to a default, delinquency, or other adverse creditor event or to a condition not
    permitted under the regulation under or related to a loan agreement or other financing agreement or has a judgement awarding monetary
    relief entered against it that is subject to appeal or under appeal;

    ●
    there is a significant
    fluctuation in Pell Grant and/or Direct Loans received by an institution during a period of award years;

    ●
    high annual drop-out rates
    from the institution as determined by ED; 

    ●
    ED requires the institutions
    to provide additional financial reporting due to a failure to meet financial responsibility standards or indicators of significant
    change in the financial condition of the institution;

    ●
    ED forms a group process
    to consider pending borrower defense to repayment claims that could be subject to recoupment;

23

    ●
    a program is discontinued
    that enrolls more than 25% of the institution’s total enrolled students who receive Title IV Program funds;

    ●
    the institution closes
    a location that enrolls more than 25% of its total enrolled students who receive Title IV Program funds;

    ●
    the institution, or one
    of its programs, is cited by a State agency for failing to meet requirements;

    ●
    the institution, or one
    of its programs, loses eligibility to participate in another Federal educational assistance program;

    ●
    a publicly traded company
    that