Tag: Augustines

  • St. Augustine’s Offers to Help Shape Trump’s Compact

    St. Augustine’s Offers to Help Shape Trump’s Compact

    The HBCU has seen its enrollment drop significantly and faced other challenges as it aims to stay open.

    Saint Augustine’s University

    Saint Augustine’s University, a historically Black college in North Carolina, has expressed interest in signing the Trump administration’s higher ed compact, Fox News reported, joining New College of Florida and Valley Forge Military College.

    However, Verjanis Peoples, the interim president of Saint Augustine’s University, and board chair Sophie Gibson wrote in a letter to the Education Department that several provisions of the proposed compact are not “compatible with the statutory mission and federal mandate under which HBCUs operate.” Those include restrictions on the use of race in admissions or for financial support. 

    “As noted in our institutional analysis, such provisions would unintentionally force HBCUs to choose between compliance and survival, a position that is neither feasible nor consistent with congressional intent,” wrote Peoples and Gibson in a letter posted by Fox News. 

    Other requirements that raise concerns include a cap on international students and a five-year tuition freeze. “Without mission-sensitive accommodations, these sections risk unintended consequences that would impede our ability to serve students effectively,” they added.

    Saint Augustine’s has struggled in recent years amid declining enrollment and financial challenges. The university had 175 students as of October 2024; more recent enrollment figures aren’t available. Late last year, Saint Augustine’s lost its accreditation, though a federal court overturned that decision. Classes were held online this fall. 

    The 158-year-old university is the first HBCU to show interest in the compact, which would require colleges to make a number of changes to their policies and practices in exchange for potential benefits such as an edge in federal grant competitions. The Trump administration first invited nine universities to give feedback on the document, and none in the group decided to sign on. Since the proposal was made public in early October, several universities have rejected it, arguing the federal funding should be based on merit—not adherence to a president’s priorities.

    The administration has initially aimed to finalize the compact by Nov. 21, but that deadline has reportedly been extended.

    Peoples and Gibson wrote that they support the compact’s goal to strengthen academic excellence, accountability and transparency in higher ed, and they see alignment between Saint Augustine’s historic mission and the administration’s proposal.

    Despite their other reservations, “Saint Augustine’s University remains eager to participate as a constructive partner and early-engagement institution,” they wrote. They asked the department to work with HBCUs to shape a final agreement that upholds “both the letter and spirit of the Compact while safeguarding our statutory purpose.”

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  • St. Augustine’s expresses interest in Trump compact — with big caveats

    St. Augustine’s expresses interest in Trump compact — with big caveats

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    Dive Brief:

    • Saint Augustine’s University told the U.S. Department of Education that it wants to “participate in and help shape” the Trump administration’s proposed compact that seeks to control a range of academic and operational policies in exchange for preferential access to federal funding.
    • However, leaders from the historically Black institution caveated their support over concerns that aspects of the compact as written “risk unintended consequences that would impede our ability to serve students effectively.”
    • “Despite these concerns, Saint Augustine’s University remains eager to participate as a constructive partner and early-engagement institution,” the leaders of the private North Carolina university said in a letter obtained by Fox News. They requested “a dialogue process” with the Education Department to facilitate “mission-sensitive accommodations” for HBCUs.

    Dive Insight:

    Last month, the Trump administration offered nine high-profile research colleges a deal — priority for federal grants in exchange for enacting a wide range of policies aligning with the president’s higher education goals.

    Some of the compact’s terms, while unprecedented, are straightforward, such as freezing tuition rates for five years, requiring standardized testing for undergraduate applicants, and capping international students’ share of undergraduate enrollment at 15%. 

    Others go beyond cut-and-dry policy changes, such as publicly auditing the viewpoints of employees and students and potentially changing or ending campus units that purposefully “punish” or “belittle” conservative ideas.

    Seven of the initially invited colleges rejected the deal, and, as of Thursday afternoon, the remaining two have yet to publicly accept or decline the offer.

    But a few colleges have sought to take their place after President Donald Trump appeared to open the compact offer to all higher ed institutions. 

    Saint Augustine’s letter makes it the third college — and the first HBCU — to publicly express interest in the bargain.

    The New College of Florida — in a move in line with its conservative makeover under Florida Gov. Ron DeSantis — became the first college to publicly volunteer to sign the compact on Oct. 27. The following day, Valley Forge Military College offered to accept the deal as well, according to The Philadelphia Inquirer.

    But unlike New College and the military college, Saint Augustine’s did not give the proposed compact a full-throated endorsement.

    Neither the Education Department nor the university responded to questions Thursday.

    Verjanis Peoples, the university’s newly appointed interim president, and Sophie Gibson, chair of its board of trustees, warned that the compact as written is “not compatible with the statutory mission and federal mandate under which HBCUs operate.”

    “Because our mission is not ornamental but foundational, we cannot implement requirements that would directly conflict with our identity as a Historically Black University or undermine our ability to serve the populations for whom we were created,” they wrote in their letter, which Fox News reported as being sent to the Education Department on Wednesday.

    Peoples and Gibson cited a handful of the compact’s provisions, including one requiring signatories to not consider race, sex, religion and other characteristics “explicitly or implicitly” in admissions or financial aid. 

    The pair said the restriction, “while well intentioned,” conflicts with Title III of the Higher Education Act, which in part provides colleges grant funding and establishes a program meant to strengthen HBCUs. The Trump administration’s proposed deal would also run contrary to “the explicit purpose of HBCUs to expand access for Black students and historically marginalized communities,” they said.

    The compact said it would grant exceptions for religious and single-sex institutions to limit admissions based on religious belief and sex, respectively, but did not address HBCUs.

    Other elements of the Trump administration’s proposal could also hinder HBCUs, Peoples and Gibson said. 

    These colleges typically maintain smaller endowments and would have a difficult time absorbing the costs of a tuition freeze. A cap on international enrollment would disproportionately hit HBCUs, which have “global partnerships across the African diaspora,” they said.

    Saint Augustine’s leaders also flagged a compact provision that would require colleges to adopt definitions of gender and sex in step with Trump’s executive order saying the federal government would only recognize two sexes, male and female, that cannot be changed. These definitions have been rebuked by the scientific and medical communities.

    HBCUs could face operational challenges if they adopt this language given their “inclusive campus policies shaped by both community needs and regulatory frameworks,” the letter said.

    “Such provisions would unintentionally force HBCUs to choose between compliance and survival, a position that is neither feasible nor consistent with congressional intent,” Peoples and Gibson said.

    Should the Trump administration take Saint Augustine’s up on its offer, the embattled university could gain a financial lifeline amidst ongoing operational turmoil.

    In recent years, Saint Augustine’s has had its accreditation revoked, then reinstated, then revoked again. The university is operating as an accredited institution this fall because of a preliminary court injunction temporarily reversing the latest revocation.

    The university’s accreditor, Southern Association of Colleges and Schools Commission on Colleges, has raised concerns over its finances and governance.

    Saint Augustine’s has attempted different tactics to address its ongoing budget issues, including pursuing land lease deals, taking out loans and drastically cutting its workforce.

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  • Arbitrators Reject Saint Augustine’s Accreditation Appeal

    Arbitrators Reject Saint Augustine’s Accreditation Appeal

    Saint Augustine’s University has lost another appeal to maintain its accreditation status, the Southern Association of Colleges and Schools Commission on Colleges announced Monday.

    But the historically Black university in North Carolina is continuing to fight to stay open, and leaders say recent loans and efforts to streamline operations are cause for optimism. Classes will be held online this fall but otherwise proceed as planned.

    SACS initially stripped accreditation from the university in December 2023 due to financial and governance issues, setting off a lengthy battle between SAU and its accreditor. SAU appealed that decision and lost in February 2024 but took the fight to court and won last July, when an arbitration committee agreed to restore SAU’s accreditation. 

    However, SACS pulled Saint Augustine’s accreditation again in December 2024, prompting another appeal, which was denied in March. Leadership at the embattled university once again sought a legal remedy only for a panel of arbitrators to side with the accreditor. Arbitrators determined that Saint Augustine’s “did not meet the burden of proof to show” that the accreditor “failed to follow its procedures and that such failure significantly attributed to the decision to remove the institution from membership,” according to details SACS released on Monday. 

    But in the Monday news release, SAU officials wrote that the “fight is far from over.” 

    University officials plan to request an injunction in court “to prevent any disruption to the university’s accreditation status,” according to SAU’s website. While SAU will remain accredited as the legal challenge plays out, the university “will explore all other means of accreditation if necessary.”

    SAU officials also sought to dispel the notion that the university was closing, a prospect that has swirled for more than a year as the HBCU has dealt with various financial setbacks and lawsuits. The university has also struggled to maintain enrollment, which has collapsed since 2022.

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  • Saint Augustine’s University loses appeal to keep accreditation

    Saint Augustine’s University loses appeal to keep accreditation

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    Dive Brief: 

    • Saint Augustine’s University announced Thursday that its appeal to keep its accreditation has been denied, striking a major blow to the struggling historically Black institution. 
    • Officials at the North Carolina university said they are entering a 90-day arbitration process in another bid to remain accredited. That will also ensure students graduating through May 2025 will earn their diplomas from an accredited institution, according to the university. 
    • Brian Boulware, Saint Augustine’s board chair, struck an optimistic tone in Thursday’s announcement about the arbitration process, saying that the university’s “strengthened financial position and governance will ensure a positive outcome.”

    Dive Insight: 

    Saint Augustine’s has been on the precipice of losing its accreditation for over a year. In 2023, the university’s accreditor — the Southern Association of Colleges and Schools Commission on Colleges — voted to terminate the university’s accreditation. However, college officials successfully contested that last year through arbitration. 

    Yet in December, SACSCOC once again voted to terminate Saint Augustine’s from its membership, citing issues with the university’s finances and governance. Saint Augustine’s Thursday announcement says that it lost its appeal of that decision, but arbitration once again gives the university another shot at retaining its accreditation. 

    Since the December vote, the university has sought to shore up its budget through widespread cuts and new sources of funding. 

    Still, Saint Augustine’s is grappling with steep declines in enrollment, with just 200 students in the 2024-25 academic year, WRAL reported. That’s down from over 1,100 students just two years ago. 

    In Thursday’s announcement, Saint Augustine’s officials announced they had secured up to $70 million, which they described as a bridge loan, “at competitive market rates and terms” in a deal that they expect to close later this month. University officials did not disclose where the $70 million in funding is coming from, citing nondisclosure agreements. 

    The announcement comes after Saint Augustine’s failed to get approval from the state attorney general’s office to enter a land lease deal with 50 Plus 1 Sports, an athletics development firm. 

    In January, the attorney general’s office said the deal could put the university’s nonprofit status at risk, arguing that the upfront lease payment of up to $70 million was far too low for Saint Augustine’s 103-acre property. The office said the campus had been appraised at over $198 million. 

    Following the decision from the attorney general’s office, the two parties began restructuring the deal to lease less than half of Saint Augustine’s campus to 50 Plus 1 Sports, INDY Week reported. Under the new terms — which circumvent the need for the state office’s sign-off — the sports development firm would also share some of its revenue from its use of the land with the university. 

    Saint Augustine’s did not mention 50 Plus 1 Sports in Thursday’s announcement.

    “This funding is a game-changer,” Hadley Evans, vice chair on Saint Augustine’s board, said in Thursday’s announcement. “We now have the financial leverage to protect SAU’s legacy, enhance academic offerings, and create sustainable revenue streams through strategic campus development.”

    Saint Augustine’s has also drastically cut its workforce amid its financial woes. In November, the university said it was cutting over 130 staff and faculty positions to shave $17 million from its budget.

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  • Saint Augustine’s accreditation appeal denied again

    Saint Augustine’s accreditation appeal denied again

    The Southern Association of Colleges and Schools Commission on Colleges denied Saint Augustine’s University’s appeal to remain accredited, SAU announced Thursday.

    The decision is the latest blow to the embattled historically Black university in North Carolina, which has struggled to maintain its accreditation since December 2023, when SACSCOC voted to strip it of its membership due to compliance issues related to governance and finances. Following that decision, SAU lost an appeal to remain accredited; it won a reprieve in the courts last July but lost accreditation again in December. Now that SASCOC has denied SAU’s latest appeal, the university will again pursue a legal remedy, officials announced.

    “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 in a Thursday statement announcing plans to contest the accreditation decision in court. “SAU is resilient, and we are resolute in our commitment to academic excellence.”

    Beyond accreditation issues, Saint Augustine’s has navigated severe fiscal issues that left it teetering on the brink of closure for months as it pursued various financial lifelines. SAU recently attempted to lease its campus to 50 Plus 1 Sports, a fledgling Florida company. The $70 million deal to lease property for 99 years with development options would have provided much-needed funds for SAU, but following a review required by state law, North Carolina officials declined to sign off on the arrangement due to the transfer of nonprofit assets.

    SAU had unsuccessfully sought approval of the deal before its appeal to SACSCOC last month.

    The North Carolina attorney general’s office, which reviewed the deal, cited insufficient documentation and concerns that SAU was only receiving $70 million for property appraised at $198 million. Saint Augustine’s and 50 Plus 1 Sports have since restructured the terms of the deal.

    In Thursday’s statement, SAU announced it “secured up to $70 million in sustainability-focused funding at competitive market rates and terms,” which it expects to close later this month. It added that nondisclosure agreements “prevent SAU from publicly disclosing the partners’ names.”

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  • Saint Augustine’s U faces ticking clock to fix finances

    Saint Augustine’s U faces ticking clock to fix finances

    Approaching a critical vote on its accreditation status next month, Saint Augustine’s University has made controversial moves in recent months to stabilize its shaky financial position, but so far none have paid off, putting the beleaguered institution in a more precarious position.

    First, the historically Black university in North Carolina took out a $7 million loan last fall that many critics have described as predatory given its 24 percent interest rate and 2 percent management fee. The university also put real estate up as collateral in case of a loan default.

    Then, in November, SAU officials also struck a $70 million deal with 50 Plus 1 Sports, a fledgling Florida company, to lease its campus and develop university property for 99 years. The deal would have provided a much-needed financial lifeline for the cash-strapped university that needs to urgently fix its finances before the accreditation review. (The college was previously stripped of accreditation due to university financial and governance issues but appealed.)

    But that lifeline is in legal limbo after the North Carolina attorney general declined to sign off on the deal Monday.

    The North Carolina attorney general’s office, which reviewed the deal due to state law on the transfer of assets from a nonprofit, announced it would not approve the arrangement with 50 Plus 1 Sports as written due to a lack of “sufficient documentation to support the proposal” and concerns that the payout “is too low to justify transfer of the lease rights” for SAU’s campus, which is appraised at $198 million. The attorney general’s Office also expressed concerns about SAU’s “ability to continue to operate.”

    Ongoing Financial Struggles

    Saint Augustine’s has faced rising pressures since December 2023 when it fired then-president Christine McPhail, who subsequently lodged a gender-based discrimination complaint against the board. That same week the Southern Association of Colleges and Schools Commission on Colleges announced it had voted to strip SAU’s accreditation due to board and finance issues.

    (SAU lost an appeal to that decision but won a reprieve in court in July before SACSCOC voted again in December to strip accreditation. The accreditor will vote on SAU’s appeal next month.)

    Since early 2024—under the guidance of interim president Marcus Burgess—SAU has navigated a series of challenges in a bid to stay afloat. In February, it was hit with a $7.9 million tax lien. That same month, local officials encouraged SAU to explore a merger with nearby Shaw University, another HBCU. Months later, SAU board chair Brian Boulware cast the proposal as an aggressive effort to ramrod a partnership. (Local officials have denied his account.) In May, a group called the Save SAU Coalition sued Boulware and other trustees, alleging malfeasance and self-dealing by the board.

    That case was later dismissed due to a lack of standing.

    Enrollment has also plummeted, falling from more than 1,100 students in fall 2022 to a head count of around 200 students last fall, according to recent estimates. SAU has also announced major staff reductions.

    As its financial pressures added up, Saint Augustine’s borrowed $7 million from Gothic Ventures, an investment firm, and secured a $30 million line of credit. The deal, which came with a 24 percent interest rate and a 2 percent loan management fee, sparked alumni protests in the fall.

    Mark DeFusco, a senior consultant with Higher Ed Consolidation Solutions and sector finance expert, told Inside Higher Ed the terms of the Gothic Ventures loan were “crazy” and “irresponsible.” DeFusco agreed with the description of the loan as “predatory.”

    SAU officials have defended the agreement, writing that the deal is “crucial for maintaining educational services” and securing the loan contradicted “claims of irresponsibility in financial dealings” leveled by critics. SAU has cast criticism of the deal as a “smear campaign.”

    Earlier this month, two local publications, INDY Week and The Assembly, reported that last fall SAU turned down a more favorable loan offer of $19.5 million with a 9 percent interest rate. That offer, from Self-Help Credit Union, stipulated that two board members, including Boulware, resign, and would have included purchasing the existing Gothic Ventures loan. The university balked at the attached conditions.

    To DeFusco, the board resignations as part of the loan conditions were a reasonable request.

    “There are provisions in leadership for all kinds of lending. And with all due respect, it was a wise provision, because you have a board that’s allowed [financial issues] to go on for several years now. This isn’t something new,” DeFusco said. “They haven’t broken even for at least five years from what I could see in their records, and their accrediting body was going to close them down, except for that arbitration. And now they’re about to close them down again.”

    Continued financial struggles ultimately led SAU to a deal with 50 Plus 1 Sports, which describes itself on its website as a financing and development firm. That agreement, according to a university statement, would “generate a $70 million upfront investment” from the company.

    But the North Carolina attorney general’s office shut down that proposed deal.

    Beyond the lack of documentation on the proposal and the low payout, Assistant Attorney General Kunal Choksi also raised questions about the university’s due diligence of the deal.

    “SAU’s board and trustees were obligated to perform due diligence on whether 50+ can meet its obligations under the transaction and has the experience to develop revenue-generating property on the leased land,” Choksi wrote in a letter shared with Inside Higher Ed.

    Choksi added that the attorney general’s office had requested “sufficient proof that 50+ has the financial ability to comply with its obligations to SAU and avoid default with its financiers” and “details about similar deals 50+ has developed, including deals with other universities, or the company’s audited financial statements.” Choksi indicated in his letter that SAU had not yet provided those details on the proposal.

    In a Tuesday statement, SAU officials said little about the concerns raised by the attorney general about the 50 Plus 1 Sports deal or its ability to operate. Instead, university officials took aim at Self-Help Credit Union.

    SAU noted concerns “about the process that led to the recent rejection” of the agreement. Specifically, they pointed to a meeting between Marin Eakes of Self-Help Credit Union and alleged that the attorney general’s letter reflected comments made by Eakes in unspecified media coverage and alleged the 50 Plus 1 Sports proposal was shared without SAU’s consent.

    SAU officials wrote in the statement that they “suspect that the Attorney General’s Office used Mr. Eakes’ counsel and input to subsequently influence their decision. Such interference by Self-Help raises significant concerns about fairness. It suggests their attempt to weaponize the NC Attorney General’s Office to obstruct the approval process for the 50 Plus 1 Sports deal.”

    An Unknown Partner

    With the North Carolina attorney general’s office shutting down the 50 Plus 1 deal, SAU has little time to fix its finances ahead of a looming vote on its accreditation status in late February.

    And questions about both the deal and the company linger.

    Information on 50 Plus 1 Sports is sparse and it is unclear, as noted by the attorney general’s office, whether the nascent company has the resources to back the deal. Little is known about 50 Plus 1 Sports, which unsuccessfully big on a $800 million stadium development deal in St. Petersburg, Fla., in early 2023. The firm was not selected for the project amid questions from local officials about how it would finance the deal and a lack of experience as a lead developer.

    In its St. Petersburg proposal, 50 Plus Sports listed a $1.4 billion deal to develop a sports and entertainment district for the University of New Orleans among its reference projects. However, a UNO spokesperson told Inside Higher Ed by email it is not “moving forward with the project.”

    Monti Valrie, founder and CEO of 50 Plus 1 Sports, did not respond to a request for comment.

    What’s Next for SAU?

    The attorney general’s office did leave the door open to reconsider the deal. But the university would have to provide more details to the office, including evidence that SAU conducted due diligence on 50 Plus 1 Sports and its finances.

    SAU officials noted in their statement that “despite these challenges, SAU remains committed to working collaboratively with the Attorney General’s Office. We believe transparency and open dialogue are essential in securing the funding for our university’s sustainability and growth.”

    But SAU is facing a ticking clock to get that information to the attorney general or rework the deal. University officials have said that the deal needed to close by Jan. 31. Otherwise, “SAU risks failing to demonstrate financial sustainability” before its appeal hearing next month, according to a university statement.

    But DeFusco wonders if SAU’s finances are too far gone to fix.

    “Their finances are so bad they may be criminal,” he said, pointing to payroll and tax issues. (The university also allegedly failed to maintain worker’s compensation for employees recently.)

    As pressure mounts, DeFusco believes the board needs more scrutiny for SAU’s financial problems, arguing “they missed it for years” as the university slipped deeper into the red.

    “Now the question is, is the board acting as a fiduciary?” DeFusco said.

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