Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 53

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 53
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 actions. Claims and lawsuits brought against us may damage our reputation or adversely
affect our stock price, even if such actions are eventually determined to be without merit. See “Risk Factor - Government and
regulatory agencies and third parties may conduct compliance reviews and audits or bring actions against us that could result in monetary
liabilities, injunctions, loss of eligibility for Title IV Programs or other adverse outcomes.”

Financial
Aid Fraud Detection. Institutions must detect and prevent financial aid fraud attempts. For example, ED requires institutions
to maintain systems to identify conflicting information that affects a student’s eligibility for financial aid and resolve it before
disbursing aid. ED also requires institutions to report suspicions of fraud to ED’s Office of the Inspector General. If our efforts
to detect and prevent financial aid fraud are unsuccessful or found to be deficient, it could lead to a finding of noncompliance with
Title IV requirements, accreditation standards, or other agencies, and could result in liabilities, loss of accreditation or Title IV
eligibility, as well as third-party claims.

Other
Financial Assistance Programs. Some of our students receive financial aid from federal sources other than the Title IV Programs,
such as programs administered by the U.S. Department of Veterans Affairs and under the Workforce Innovation and Opportunity Act (“WIOA”).
In addition, some of our students receive state financial aid in the form of grants, loans or scholarships. The eligibility and compliance
requirements for these federal and state financial aid programs are extensive and vary among the funding agencies and by program. Our
failure to comply with legal requirements applicable to federal and state financial assistance programs could result in repayment liabilities,
sanctions, or loss of eligibility to participate in those programs which could impact our results of operations and also impact our compliance
with ED’s 90/10 Rule which requires our institutions to generate revenues from sources other than the Title IV Programs and other
federal financial assistance.

33

States
that provide financial aid to our students face budgetary constraints, which in certain instances has reduced the level of state financial
aid available to our students. Due to state budgetary shortfalls and constraints in certain states in which we operate, the overall level
of state financial aid for our students could decrease in the near term, but we cannot predict how significant any such reductions will
be or how long they will last. Federal budgetary shortfalls and constraints, or decisions by federal lawmakers to limit or prohibit access
by our institutions or their students to federal financial aid, could result