Historically Black College Declares Bankruptcy Following 24% Loan Agreement
Saint Augustine’s University, a historically Black college, has filed for Chapter 11 bankruptcy protection, according to Bloomberg. Founded in 1867, Saint Augustine’s is one of the oldest historically Black colleges in the US, but has faced financial struggles in recent years.
Earlier this month, the board of directors at the Raleigh, North Carolina-based school voted unanimously in favor of initiating the bankruptcy process, as per a resolution included with court documents. On Monday, the college listed liabilities of $50 million to $100 million and assets of $100 million to $500 million.
Saint Augustine’s University filing for bankruptcy
Enrollment at the college has fallen by more than 80% over the past decade. In 2024, only 175 students attended the school, according to the latest federal data. It has also faced other monetary pressures, causing the college to take out a $7 million loan at 24% interest in 2024.
What will happen next?
According to their website, every student at Saint Augustine’s will complete their degrees at another accredited institution; however, the school continues to offer non-degree certificates and apprenticeship programs.
“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, according to INDY Week.
Image: Saint Augustine’s University
