Saint Augustine’s University (SAU) today addressed the outcome of its accreditation arbitration with SACSCOC with a message of resilience and determination. The arbitration panel affirmed the Appeals Committee’s decision upholding SACSCOC’s move to remove SAU from membership. While this outcome is not what the university had hoped for, their fight is far from over. SAU will remain accredited and operational during the litigation process, and Fall 2025 classes will commence virtually as scheduled for both new and returning students. The university maintains a clear pathway towards launching its financial recovery plan thanks to its prompt legal action to ensure that its students’ degrees remain accredited.

“We will stop at nothing to ensure that SAU maintains its accreditation and continues serving our students,” said Board of Trustees Chairman Brian Boulware. “SAU’s mission is bigger than any one setback. For over a century, SAU has been a beacon of opportunity. That legacy will continue. We are pressing onward – with faith, focus, and fortitude – to secure the accreditation our students deserve. Our resolve to educate and empower our students is unshakeable, and the entire SAU community stands together to support the path ahead.”

What This Decision Means
In response to the arbitration result, SAU’s attorneys will file an injunction in court to prevent any disruption to the university’s accreditation status. This legal action will effectively extend SAU’s accredited status during the transition period, ensuring that current and future graduates receive their degrees from an institution that is accredited.

“SAU is not closing – our doors remain open, and classes will continue,” said SAU Interim President Dr. Marcus H. Burgess. “This decision does not define us — our resilience does. SAU has faced challenges before, and each time, we have risen to meet them. We have significantly strengthened our foundation, and we will continue to serve our students with excellence. Our priority now is to ensure every student can complete their education at SAU with an accredited degree in hand, and we have a clear plan to make that happen.”

Pursuit of Maintaining Accreditation
The university is continuing its process of maintaining accreditation through legal intervention to maintain current accreditation and will explore all other means of accreditation if necessary to demonstrate SAU’s absolute commitment to leaving no stone unturned in maintaining quality and compliance for its students.

“Maintaining accreditation is a critical step in our plan to safeguard our students’ futures,” said Dr. Verjanis A. Peoples, Interim Provost & Vice President of Academic Affairs. “We are confident that we can continue providing federal financial aid and an accredited degree pathway for our students.”

Key Financial Recovery Milestones
Despite the arbitration committee’s decision, SAU has made tremendous progress over the past year, and the university’s progress will continue unabated. SAU has recently produced a comprehensive “SAU Reset” five-year strategic plan to propel the university forward beyond this current moment in history. Meanwhile, the university has bolstered its financial stability, improved governance, and enhanced student outcomes in preparation for a sustainable future over the past year. The following key actions have strengthened SAU’s foundation:

• Debt Restructuring and New Funding: The university secured significant new funding and established partnerships to address its debt and invest in its future. These efforts included a $7 million loan from Gothic Ventures to support short-term needs, as well as a major partnership that will leverage SAU’s valuable real estate assets through a long-term lease and redevelopment initiative. The plan will clear SAU’s existing debts and fund new investments by unlocking the value of underutilized campus property through mixed-use development. The university is finalizing the agreement and will share more specific details in the coming weeks. It is a game-changing investment that provides SAU with the financial leverage to move forward, regardless of the accrediting body.
• Enhanced Financial Controls and Audits: The University completed four consecutive annual financial audits (FY21–FY24) to ensure complete transparency and accountability in its finances. Improved financial management practices and oversight mechanisms are now in place to maintain compliance with accreditation standards.
• Cost Restructuring for Sustainability: To “right-size” the institution, SAU streamlined its operations in late 2024, including painful but necessary budget cuts that reduced expenditures by approximately 50% and yielded $17 million in annual savings. These decisive actions have resulted in a balanced budget for the current fiscal year, demonstrating prudent financial stewardship.
• Strengthened Governance and Oversight: SAU’s Board of Trustees and administration have enhanced financial oversight processes, implemented a sustainability plan, and tightened controls on expenditures, ensuring compliance with accreditation standards and fostering long-term fiscal health.

That plan includes not only the pursuit of alternative accreditation and the legal injunction but also a continued focus on academic excellence and student success. SAU remains dedicated to providing a high-quality, uninterrupted educational experience, and Fall 2025 classes will commence virtually as scheduled.

“Throughout this process, our core mission remains unchanged: to provide its students with a quality education and a nurturing environment rooted in integrity, faith, and excellence,” said Trustee Sophie Gibson. “The Falcon community’s spirit is unbroken. SAU will continue to soar to greater heights, demonstrating that perseverance and commitment can overcome any challenge on the path to institutional renewal.”

Moving Forward
SAU will keep its community informed as it advances in its pursuit of maintaining accreditation. Meanwhile, the university prepares to welcome new and returning students for a virtual Fall semester with course offerings available to traditional and adult learners, particularly in the Raleigh community.SAU’s leadership is actively engaging with state and federal education officials, alumni, donors, and partners to garner support and ensure a smooth transition. 

Request for Support
The university calls upon its network of supporters and the wider Raleigh community to remain steadfast during this period by supporting the Falcon Pride Initiative, which aims to cover the estimated $1 million litigation cost, including a $350,000 retainer fee. The university’s resilience is a collective effort – one that has been forged through adversity and will ultimately lead to a stronger, reinvented Saint Augustine’s University.

Click here for more information on SAU’s SACSCOC Updates.
Click here to support the Falcon Pride Initiative.