Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 116

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 116
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 restrictions, withholding transcripts, improper accelerated payments,
failure to issue refunds, and improper lending relationships. In May 2025, the CFPB indicated it would deprioritize regulation of student
loans. Failure to comply with applicable laws and requirements could result in repayment liabilities, sanctions, investigations or litigation
which could impact our operations. If the CFPB prioritizes regulation of student loans in the future, the likelihood of these results
would increase.

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 the Title IV Programs or other adverse outcomes.

Because
we operate in a highly regulated industry, we are subject to compliance reviews and audits as well as claims of noncompliance and lawsuits
by government agencies, regulatory agencies and third parties. Our institutions are subject to audits, program reviews, site visits and
other reviews by various federal and state regulatory agencies, including, but not limited to, ED, ED’s Office of Inspector General,
state education agencies and other state regulators, the U.S. Department of Veterans Affairs and other federal agencies and by our accrediting
agencies. In addition, each of our institutions must retain an independent certified public accountant to conduct an annual audit of
the institution’s administration of Title IV Program funds. Each of our institutions must submit the resulting audit report to ED for review.

69

If
one of our institutions fails to comply with accrediting or state licensing requirements, such school and its main and/or branch campuses
and educational programs could be subject to the loss of state licensure or accreditation, which in turn could result in a loss of eligibility
to participate in the Title IV Programs. If ED or another agency determined that one of our institutions improperly disbursed Title IV
Program funds or other financial assistance funds or violated a provision of the HEA or ED regulations, the institution could be required
to repay such funds and related costs to ED or other agencies, and could be assessed an administrative fine or subject to other sanctions
including loss of eligibility to participate in the impacted financial assistance program. ED could also place the institution on provisional
certification status and/or transfer the institution to the reimbursement or cash monitoring system of receiving Title IV Program funds,
under which an institution must disburse its own funds to students and document the students’ eligibility for Title IV Program
funds before receiving such funds from ED. It could also impose letters of credit, restrict participation, or take actions