Saint Augustine’s University has lost an appeal hearing for its accreditation. The Southern Association of Colleges and Schools Commission on Colleges reaffirmed its December decision to remove the private HBCU from its membership.
The university said it will remain open and is pursuing an “arbitration process” to ensure students graduating in May do so from an accredited institution.
“This decision does not define us — our resilience does,” said Interim President Marcus Burgess in a statement. “We urge our alumni and supporters to stand with SAU as we strengthen our foundation and ensure our mission continues for generations.”
National Center for Education Statistics
Universities must be accredited to receive federal funding, like Pell Grants. The SACSCOC decision will affect a significant majority of Saint Augustine’s campus, as the university distributed Pell Grants to 76% of its students in 2023.
“HBCUs tend to have higher proportions of their students who are relying on federal financial aid to pay their tuition bills, to pay for living costs,” said Edward Conroy, a higher education policy manager for a think tank called New America, whose research focuses on accreditation issues. “It’s usually pretty financially difficult to continue as an unaccredited institution.”
Conroy said after schools lose their accreditation, they often end up in an enrollment spiral. Without accreditation, it’s harder for a school to recruit students. Enrolled students often decide to transfer to accredited institutions.
Saint Augustine’s University has already lost more than 800 students from 2023 to this year. Only about 200 remain.
Over those two years, the HBCU has also had trouble paying its faculty as well as nearly $10 million in tax liens from the IRS. The school also has $32 million in other unpaid debts.
Continued financial instability was a driving factor in SACSCOC’s decision to revoke the HBCU’s accreditation. The agency originally put SAU on probation in December 2022 after it failed to meet several of its financial standards.
Saint Augustine’s enlisted several strategies to shore up its finances. They included catching up on a four-year backlog of audits, laying off half of its employees, and entering a heavily criticized multimillion-dollar loan agreement.
The HBCU’s latest gambit is a lease deal with a sports development startup called 50 Plus 1 Sports. The university said the deal will provide a $70 million “cash infusion” and touted the partnership as a lifesaver for the HBCU.
In December, Interim President Marcus Burgess said he was confident the agreement, along with the HBCU’s other strategic changes, would “definitively resolve” all of SACSCOC’s remaining areas of concern.
Now, the university is claiming that $70 million partnership will help it remain open regardless of SACSCOC’s decision to revoke its membership.
“This funding is a game-changer,” said Board of Trustees Vice Chairman Hadley Evans. “We now have the financial leverage to protect SAU’s legacy, enhance academic offerings, and create sustainable revenue streams through strategic campus development.”
Loan experts and the state Attorney General’s Office have expressed serious concerns about the 50 Plus 1 Sports deal.
The university originally planned to lease all 103 acres of its land to 50 Plus 1 Sports. Because SAU is a nonprofit, the state Attorney General’s Office had to sign off on any agreement involving more than half of its land.
In it’s initial review, the AG’s Office said the deal raised several “chief areas of serious concern” and it didn’t reflect the true value of the HBCU’s land. SAU later revised the lease agreement to involve less than half of its property, negating the need for the state to sign off.
“We have made substantial progress and are confident that our strengthened financial position and governance will ensure a positive outcome,” said Board of Trustees Chairman Brian Boulware. “SAU is resilient, and we are resolute in our commitment to academic excellence.”
Saint Augustine’s University has been a member of SACSCOC since 1942.
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