Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 13

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 13
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CMCC’s pending applications for approval
of their change in ownership and control.

ED
typically provides provisional certification to an institution following a change in ownership resulting in a change of control and also
may provisionally certify an institution for other reasons, including, but not limited to, noncompliance with certain standards of administrative
capability and financial responsibility. Our Integrity and CCMCC institutions are currently approved under a temporary provisional program
participation agreement which (as described in a subsequent section) permits an institution to continue participating in the Title IV
Programs on a month-to-month basis while ED reviews the change in ownership and as long as the institution timely submits certain documentation
to ED during the process. An institution that is provisionally certified receives fewer due process rights than those received by other
institutions in the event ED takes certain adverse actions against the institution, is required to obtain prior ED approvals of new campuses
and educational programs and may be subject to heightened scrutiny by ED. However, provisional certification does not otherwise limit
an institution’s access to Title IV Program funds.

On
October 31, 2023, ED published a final rule revising its Title IV Program certification regulations with an effective date of July 1,
2024. The rule codifies additional grounds for placing an institution on provisional certification, including a determination by ED that
an institution is at risk of closure and ED’s consideration of supplementary performance measures that include an institution’s
withdrawal rate, recruiting expenses, and licensure pass rate. The revised certification regulations also increase the number of requirements
contained in an institution’s Program Participation Agreement (including, for example, a requirement to comply with all state laws
related to closure), require certain ownership entities to sign the Program Participation Agreement, establish new standards for maximum
program length (including a prohibition on the length of certain educational programs from exceeding the required minimum number of hours
established by applicable state(s) for entry-level training requirements for the occupation for which the programs train students), requires
certification that an institution’s programs meet applicable educational requirements for graduates to obtain required occupational
licensure or certification in a state, and restricts the ability of institutions to withhold transcripts. The revised regulations also
impose new potential conditions on provisionally certified institutions, including, but not limited to, the submission of teach-out and/or
document retention plans, growth restrictions, acquisition restrictions, additional reporting requirements, limitations on written arrangements,
and additional conditions applicable to institutions found to have engaged in substantial misrepresentations or institutions seeking