Saint Augustine’s University loses appeal to keep accreditation

An article from site logo Dive Brief Saint Augustine’s University loses appeal to keep accreditation

Officials at the historically Black college are now contesting the decision to strip its accreditation via arbitration — a process it’s been through before.

Published March 7, 2025 Natalie Schwartz's headshot Natalie Schwartz Senior Editor Aerial view of Saint Augustine's campus. Saint Augustine's University, seen above, is pursuing arbitration with its accrediting agency after losing an appeal to keep its accreditation. The image by SAUFalconsWiki is licensed under CC BY 4.0 Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: 
  • Saint Augustine’s University announced Thursday that its appeal to keep its accreditation has been denied, striking a major blow to the struggling historically Black institution. 
  • Officials at the North Carolina university said they are entering a 90-day arbitration process in another bid to remain accredited. That will also ensure students graduating through May 2025 will earn their diplomas from an accredited institution, according to the university. 
  • Brian Boulware, Saint Augustine’s board chair, struck an optimistic tone in Thursday’s announcement about the arbitration process, saying that the university’s “strengthened financial position and governance will ensure a positive outcome.”
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Saint Augustine’s has been on the precipice of losing its accreditation for over a year. In 2023, the university’s accreditor — the Southern Association of Colleges and Schools Commission on Colleges — voted to terminate the university’s accreditation. However, college officials successfully contested that last year through arbitration. 

Yet in December, SACSCOC once again voted to terminate Saint Augustine’s from its membership, citing issues with the university’s finances and governance. Saint Augustine’s Thursday announcement says that it lost its appeal of that decision, but arbitration once again gives the university another shot at retaining its accreditation. 

Since the December vote, the university has sought to shore up its budget through widespread cuts and new sources of funding. 

Still, Saint Augustine’s is grappling with steep declines in enrollment, with just 200 students in the 2024-25 academic year, WRAL reported. That’s down from over 1,100 students just two years ago. 

In Thursday’s announcement, Saint Augustine’s officials announced they had secured up to $70 million, which they described as a bridge loan, “at competitive market rates and terms” in a deal that they expect to close later this month. University officials did not disclose where the $70 million in funding is coming from, citing nondisclosure agreements. 

The announcement comes after Saint Augustine's failed to get approval from the state attorney general's office to enter a land lease deal with 50 Plus 1 Sports, an athletics development firm. 

In January, the attorney general’s office said the deal could put the university’s nonprofit status at risk, arguing that the upfront lease payment of up to $70 million was far too low for Saint Augustine’s 103-acre property. The office said the campus had been appraised at over $198 million. 

Following the decision from the attorney general’s office, the two parties began restructuring the deal to lease less than half of Saint Augustine’s campus to 50 Plus 1 Sports, INDY Week reported. Under the new terms — which circumvent the need for the state office's sign-off — the sports development firm would also share some of its revenue from its use of the land with the university. 

Saint Augustine’s did not mention 50 Plus 1 Sports in Thursday’s announcement.

“This funding is a game-changer,” Hadley Evans, vice chair on Saint Augustine’s board, said in Thursday’s announcement. “We now have the financial leverage to protect SAU’s legacy, enhance academic offerings, and create sustainable revenue streams through strategic campus development.”

Saint Augustine’s has also drastically cut its workforce amid its financial woes. In November, the university said it was cutting over 130 staff and faculty positions to shave $17 million from its budget.

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