Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 376

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 376
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 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.

61

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), require
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
to convert to nonprofit status following a change in ownership. The revised certification regulations are expansive, complex and could
be difficult for our institutions to comply with as its applicable requirements are interpreted by ED. If ED finds that any of our institutions
do not fully satisfy all required eligibility and certification standards, ED could limit, condition, suspend, terminate, revoke, or
decline to renew our institutions’ participation in the Title IV Programs or impose liabilities or other sanctions. Continued Title