A university in North Carolina affiliated with The Episcopal Church, Saint Augustine’s University (SAU), has lost its accreditation once again but plans to undergo an arbitration process to contest the decision.
The institution announced last Thursday that its appeal to the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) regarding the termination of its accreditation had failed.
Consequently, SAU will pursue a 90-day arbitration process, during which the university will remain operational, allowing students graduating in May to receive degrees from an officially accredited institution.
“Per SACSCOC’s arbitration policy, SAU has the right to pursue binding arbitration to contest the accreditation decision,” the university explained. “Arbitration allows SAU to demonstrate its financial stability and commitment to compliance with accreditation standards.”
In its announcement, SAU referenced a $70 million bridge loan from an unnamed donor that they expect to secure by the end of the month, which they believe will help resolve their financial challenges. Founded in 1867 as a historically African American university, SAU has struggled to maintain its accreditation in recent years due to significant financial issues.
In December 2023, SACSCOC trustees voted to remove SAU from membership as an accredited institution due to concerns regarding its financial stability. An appeals committee upheld this ruling in February 2024.
In response to the ongoing issues, SAU shifted most of its classes from in-person to online formats. Additionally, the U.S. Department of Labor announced an investigation into the university last year amid reports that employees had gone multiple pay periods without receiving paychecks.
In July, an arbitration committee appointed by SACSCOC unanimously voted in favor of reversing the accreditation removal, although it noted that SAU would remain on probation. As part of its efforts to improve its financial standing, SAU announced in November that it had cut 67 staff positions, including 37 full-time faculty and 32 adjunct faculty roles, amounting to approximately 50% of its employees.
SACSCOC voted at its annual meeting in Austin, Texas, last December to remove SAU from membership, and the university indicated its intention to appeal this decision.
