A university in North Carolina affiliated with The Episcopal Church has again lost accreditation, but will undergo an arbitration process to try and reverse the decision.
Saint Augustine’s University announced last Thursday that its effort to appeal a decision by the Southern Association of Colleges and Schools Commission on Colleges to end its accreditation had failed.
As a result, SAU will pursue a 90-day arbitration process, during which time the university will remain in operation and students graduating in May will receive degrees from an officially accredited institution.
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“Per SACSCOC’s arbitration policy, SAU has the right to pursue binding arbitration to contest the accreditation decision,” explained the university. “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 should resolve their financial problems.
“The funds we have secured provide a bright future for the students coming in now and for generations to come,” said Trustee Sophie Gibson, as quoted in the announcement. “SAU is not just sustaining itself; we are building a foundation for future Falcons to thrive.”
A historically African American university founded in 1867, SAU has struggled in recent years to maintain its accreditation, due to considerable financial problems at the institution.
SACSCOC trustees voted to remove SAU from membership in December 2023 as an accredited institution over concerns about its financial stability, with an appeals committee upholding the ruling in February 2024.
In response to the ongoing issues, SAU moved the bulk of its classes from in-person to online, with interim SAU President Marcus Burgess saying in a statement last year that “it is also our utmost responsibility to ensure the safety, well-being, and dignity of the SAU community, especially our students.”
The U.S. Department of Labor announced an investigation into the university last year amid reports that employees had gone multiple pay periods without paychecks.
Last July, an arbitration committee appointed by SACSCOC unanimously voted to support reversing the accreditation removal, though it maintained that SAU remains on probation.
“The SACSCOC arbitration committee’s decision serves as a pivotal moment for SAU’s redemption and renewal,” said SAU Board of Trustees Chair Brian Boulware earlier this year.
“The unanimous reversal by the arbitration committee rightfully corrects the injustice inflicted upon SAU by SACSCOC’s initial ruling and underscores the university’s steadfast commitment to excellence and growth.”
In November, as part of its efforts to improve its financial standing, SAU announced it cut 67 staff positions, 37 full-time faculty positions and 32 adjunct faculty positions, or around 50% of its employees.
Despite the measures, SACSCOC voted at its annual meeting in Austin, Texas, last December to remove SAU from membership, though the university said it would appeal the decision.
