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Financial woes cost SAU accreditation—here’s what happens next

SAU’s Accreditation Appeal Rejected by SACSCOC

Saint Augustine’s University (SAU), a historically Black university in North Carolina affiliated with The Episcopal Church, has lost its accreditation once again. The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) rejected the institution’s appeal to remain accredited. Despite this setback, SAU announced its intention to undergo a 90-day arbitration process to challenge the decision.

University Remains Operational During Arbitration

SAU assured students that it would continue operating while arbitration is underway. Students graduating in May will still receive degrees from an accredited institution. The university emphasized that arbitration provides an opportunity to prove its financial stability and compliance with accreditation standards.

Financial Challenges at the Core of Accreditation Loss

SAU has struggled with financial instability for years, leading to concerns from SACSCOC. In December 2023, the accrediting body voted to revoke the university’s accreditation due to ongoing financial difficulties. An appeals committee upheld the ruling in February 2024, prompting SAU to seek arbitration as a last resort. The university cited a potential $70 million bridge loan from an unnamed donor, expected by the end of the month, as a key step in addressing its financial struggles.

Past Efforts to Stabilize the Institution

To cut costs, SAU has made significant workforce reductions. In November, the university announced layoffs affecting 67 staff members, including 37 full-time faculty and 32 adjunct instructors—roughly 50% of its workforce. Additionally, SAU shifted most of its classes online. Meanwhile, the U.S. Department of Labor is investigating the university over reports that employees missed multiple paychecks.

Supporters and Critics Weigh In

Supporters argue that SAU is vital in educating African American students and should be given time to recover financially. They hope the anticipated bridge loan will help stabilize the institution. However, critics, including SACSCOC, remain skeptical, pointing to repeated financial mismanagement as a major concern. The arbitration outcome will determine whether SAU can regain its footing or face permanent closure.


Source:

Episcopal Church-Affiliated University Loses Accreditation, Set for 90-Day Arbitration

Image: Wikimedia Commons

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