Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 113

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 113
---
 post a letter of credit in favor
of ED in an amount equal to 25% of the total amount of Title IV Program funds that should have been returned for students who withdrew
in the institution’s prior fiscal year. Neither HDMC nor CCC has received such a finding in either of the two most recently completed
annual Title IV Program compliance audits submitted to ED. On January 30, 2024, due to a failure to timely return unearned Title IV Program
funds to ED, Integrity was required to submit an acceptable form of financial protection for 25% of the refunds that were made for the
fiscal year ended June 30, 2023 in the amount of $18,828.

In
January through March 2024, ED conducted negotiated rulemaking to prepare proposed regulations on several topics including the rules
pertaining to returns of Title IV Program funds. On July 24, 2024, ED promulgated proposed amended regulations related to return of Title
IV calculations. ED published the final regulations on January 3, 2025, with a general effective date of July 1, 2026. The regulations
codify ED’s guidance requiring the date of determination of withdrawal to be documented within 14 days after the student’s
last date of attendance for institutions that take attendance; remove the option for clock-hour programs to use the “cumulative”
method to calculate Title IV earned; and changes Return of Title IV calculations amended for programs offered in modules. We are evaluating
whether and the extent to which the new regulations may negatively impact our performance of return of Title IV.

If
our institutions open new campuses or add or change new educational programs, we may be required to obtain approvals from ED and our
state and accrediting agencies.

For-profit
educational institutions must be authorized by their state education agencies and be fully operational for two years before applying
to ED to participate in the Title IV Programs. However, an institution that is certified to participate in the Title IV Programs may
establish an additional location and apply to participate in the Title IV Programs at that location without reference to the two-year
requirement, if such additional location satisfies all other applicable ED eligibility requirements. Our expansion plans are based, in
part, on our ability to open new schools as additional locations of our existing institutions and are dependent upon ED’s timely
review and approval of new campuses. Effective July 1, 2024, ED has discretion to condition the participation of provisionally certified
schools