HBCU Saint Augustine’s University Files For Chapter 11 Bankruptcy And Loses Accreditation

Saint Augustine’s University has filed for Chapter 11 bankruptcy.

As AFROTECH™ previously told you, the Raleigh, NC-based Historically Black College and University (HBCU) faced financial challenges, including difficulties paying staff, vendors, and multiple financial liens. In 2023, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) voted to revoke the HBCU’s accreditation, but that decision was challenged through arbitration, Higher Ed Dive reports.

In 2025, the school lost its accreditation and attempted to sue to regain it, but the lawsuit has since been dropped, according to INDY Week. The university’s Board felt that continuing to pursue the lawsuit would be a hindrance to regaining financial security, according to its FAQ page.

Very few students remain at the university, and those remaining “will need to finish their degrees at another accredited institution,” according to a separate answer on the FAQ page.

“SAU will instead focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation. The institution reached this conclusion in cooperation with its accreditor, SACSCOC, to ensure impacted students were able to graduate from an accredited institution,” the university said in a press release, per INDY Week.

Now, the university has also filed for Chapter 11 bankruptcy, a decision approved by the University’s Board of Trustees, “to create a new path forward,” it said on the FAQ page. The school’s debt ranges from $50 million to $100 million owed to 345 creditors, including vendors, financial lenders, former students, and multiple federal agencies, reports INDY Week.

Local nonprofit lender Self-Help has begun taking responsibility for a portion of the university’s debt and offered more favorable loan terms, lowering the interest rate. The university’s primary lender is Help Ventures Fund, per the outlet.

The university will continue operating during bankruptcy proceedings and will still offer tech and nursing certifications, per INDY Week.

Furthermore, the HBCU’s interim president, Dr. Jennie Ward-Robinson, has resigned. Ward-Robinson served in the position for nearly four months and will now be succeeded by Dr. Verjanis A. Peoples.