Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 369

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 369
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 or the impact the changes to financial
responsibility requirements may have on our schools.

A
failure to maintain compliance with ED’s “administrative capability” requirements would negatively impact our operations.

ED
assesses the administrative capability of each institution that participates in the Title IV Programs under a series of separate standards.
Failure to satisfy any of the standards may lead ED to find the institution ineligible to participate in the Title IV Programs or to
place the institution on provisional certification as a condition of its participation and potentially impose fines or other sanctions.
On October 31, 2023, ED published regulations revising and expanding its administrative capability standards. Those revisions, effective
July 1, 2024, modified the criteria for administrative capability such that they now include, among other things, that the institution:

    ●
    comply
    with all applicable federal student financial aid requirements;

    ●
    have
    capable and sufficient personnel to administer the Title IV Programs;

    ●
    administer
    the Title IV Programs with adequate checks and balances in its system of internal controls over financial reporting;

    ●
    divide
    the function of authorizing and disbursing or delivering Title IV Program funds so that no office has the responsibility for both
    functions;

    ●
    establish
    and maintain records required under the Title IV Programs regulations;

    ●
    develop
    and apply an adequate system to identify and resolve discrepancies in information from sources regarding a student’s application
    for financial aid under the Title IV Programs;

    ●
    have
    acceptable methods of defining and measuring the satisfactory academic progress of its students;

    ●
    refer
    to the Office of the Inspector General any credible information indicating that any applicant, student, employee, third party servicer
    or other agent of the school has been engaged in any fraud or other illegal conduct involving the Title IV Programs;

    ●
    not
    be, and not have any principal or affiliate who is, debarred or suspended from federal contracting or engaging in activity that is
    cause for debarment or suspension;

    ●
    provide
    adequate financial aid counseling to its students;

    ●
    submit,
    in a timely manner, all reports and financial statements required by the Title IV Program regulations;

    ●
    provide
    adequate career services and geographically accessible clinical or externship opportunities to it students;

    ●
    disburse
    funds to students in a timely manner that best meets their needs