Following several years of declining enrollment, accreditation turmoil, and financial challenges, Saint Augustine’s University (SAU) in Raleigh, North Carolina, filed for bankruptcy in April. At that time, the HBCU also decided to end its ongoing legal battle regarding its status with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). The university’s recent May 2026 graduates were the last students to receive accredited degrees from the institution.
In a recent bankruptcy meeting, SAU’s board members were questioned on the university’s current financial state, which includes more than $8 million in outstanding funds to various federal agencies, according to a report from WRAL. The university is reportedly considering selling some of the land of its 105-acre campus.
An attorney representing multiple federal agencies, including the Department of Education and the Internal Revenue Source, asked SAU Chairwoman Sophie Gibson to explain how the HBCU spent those funds. Gibson said she believes the money was not spent with malicious intent, but instead used to make payroll.
During this meeting, SAU’s bankruptcy attorney, Ciara Rogers, said the HBCU now believes it can pay back its secured creditors. In January, SAU made a deal with Self-Help Venture Fund, which allowed the school to stay open and address immediate financial issues. Going forward, the HBCU plans to offer certification and apprenticeship programs as a revenue source.
According to Gibson, SAU employs about 25 people and some contractors, who are currently working on improving security and installing fencing on campus.
