Raleigh, NC-based St. Augustine University (SAU) has lost its appeal for accreditation and will enter a 90-day arbitration process.

According to WTVD-11, SAU has been on probation with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) for two years. In December 2023, the SACSCOC Board of Trustees voted to remove SAU from membership due to financial and governance issues.

After a successful appeal, it was reinstated in July 2024 and remained effective through the end of the year. However, on Thursday, March 6, 2025, the Historically Black College and University announced that the appeal to keep its accreditation had ultimately been denied, per WDTV-11.

The university stated that the 90-day arbitration process would ensure that all students graduating by May 2025 receive degrees from an accredited institution.

“We have made substantial progress and are confident that our strengthened financial position and governance will ensure a positive outcome,” Board of Trustees Chairman Brian Boulware said. “SAU is resilient, and we are resolute in our commitment to academic excellence.”

The university’s loss of accreditation status stems from significant economic challenges, including difficulties paying staff and vendors as well as multiple financial liens.

According to SACSCOC’s arbitration policy, SAU can seek binding arbitration to contest the accreditation decision. The process allows SAU to demonstrate its financial stability and commitment to accreditation standards.

SAU has outlined the steps it has taken to address the financial problems, including four audits, the reduction of half the staff — which resulted in $17 million in savings — and obtaining a $7 million loan from Gothic Ventures.

“We have donors who want to donate, but they won’t donate as long as that Board (of Trustees) is there,” said Benjamin Johnson, a school alumni and chair of the Save SAU Coalition, which closely monitors developments at the university.

However, alums and other groups have raised concerns about the loan’s high interest rate and the decision to use many of the university’s properties as collateral, WTVD-11 reported.

“It would be a huge mistake, and it would be very shortsighted to sell land,” said alum Karole Kimble. “God only created so much land. And St Augustine’s, the wisdom of our founding fathers and the Episcopal Church was to have that land. It was land that the global majority of Black people back then, we did not have.”