Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 367

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 367
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iting 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;

56

    ●
    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 arrangement 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;

    ●
    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 directly or indirectly owns at least 50% of the institution discloses in public securities exchange
    filing that it is under investigation for possible violation of law;

    ●
    the
    institution is cited by another federal