Saint Augustine’s University’s accreditor has upheld its decision to revoke the Raleigh HBCU’s accreditation.
After initially losing accreditation in December because it failed to meet financial and governance requirements set by its accreditor, the Southern Association of Colleges and Schools Committee on Colleges (SACSCOC), SAU appealed the decision at a hearing last week. Following the unsuccessful appeal, the university has one more chance to remain accredited through an arbitration proceeding with SACSCOC this spring.
In a Thursday press release announcing the appeal result, SAU said it would pursue arbitration so that the Class of 2025 could graduate from an accredited institution, and reassured community members that the university “remains fully operational” for the time being. SACSCOC did not immediately respond to a request for comment but is expected to release a statement explaining its decision soon.
Asking for arbitration allows the university to remain accredited on a probationary basis until the process is complete, according to SACSCOC’s website. The accreditor describes its arbitration process as “final and binding.”
SAU now finds itself in exactly the same position it was in a year ago when it lost accreditation and its appeal hearing. The university became the first institution ever to pursue SACSCOC’s arbitration process, which it won to restore accreditation in July 2024. That victory allowed SAU to remain accredited on probation this school year until SACSCOC revoked its accreditation again in December.
If SAU lost accreditation permanently, it would lose federal funding and the value of its degrees would drop dramatically. But even if the school manages to remain accredited, it faces an uphill battle to rehabilitate its reputation and secure its finances after a grueling year of declining enrollment, accumulating debt, and mounting calls from alumni and former trustees to replace its top leaders. The university is also under investigation from the NC attorney general’s office over allegations related to its board of trustees, as INDY and The Assembly first reported.
In its press release, SAU wrote that it has secured “up to $70 million in sustainability-focused funding at competitive market rates and terms,” noting that the deal is “anticipated” to close this month and that a non-disclosure agreement prevents the university from naming its financial backer. It’s unclear whether the university is referencing the development firm 50 Plus 1 Sports, with which the university has been negotiating a land lease agreement, or a new agreement with a different partner. 50 Plus 1 Sports did not immediately respond to a request for comment.
That $70 million could help the university pay off tens of millions of dollars of debt and address deferred maintenance issues on campus. However, SACSCOC has yet to make its own announcement regarding its decision to deny the university’s appeal, so it’s unclear whether the cash infusion alone would fully address SAU’s noncompliance issues.
In the press release, SAU’s board vice chair Hadley Evans described the money as a “game-changer” that would pave the way to financial sustainability through “strategic campus development.”
University board chair Brian Boulware projected confidence in SAU’s future despite the setback.
“We have made substantial progress and are confident that our strengthened financial position and governance will ensure a positive outcome,” Boulware said in the press release. “SAU is resilient, and we are resolute in our commitment to academic excellence.”
According to SACSCOC’s website, Saint Augustine’s has 10 calendar days after the appeals committee shares its final decision to submit a “notice of arbitration” to SACSCOC accompanied by a $15,000 check to cover arbitration expenses.
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Chloe Courtney Bohl is a corps member for Report for America. Reach her at chloe@indyweek.com. Comment on this story at backtalk@indyweek.com.