The court order will allow the struggling Raleigh HBCU, which also announced a new board chair, to continue operations as long as the litigation is pending
Saint Augustine's University will be allowed to operate this fall thanks to a preliminary court injunction that has paused its accreditor's decision to revoke its status.
After years of financial struggles, the private HBCU in Raleigh lost accreditation in July following two failed appeal attempts. Accreditation is necessary for schools to receive federal financial aid.
As a final resort, schools can sue their accreditor in court to pause the decision. SAU filed a preliminary injunction in the U.S. District Court for the Northern District of Georgia, which was granted this week, according to a press release from the school. SAU will remain accredited as long as the legal proceedings continue.
"This is a tremendous win for Saint Augustine's University and, most importantly, for our students," said interim President Marcus Burgess in a press release. "We have said all along that we will stop at nothing to maintain our accreditation and continue serving our scholars -- and we meant it."
While the university said a $100,000 donation from their National Alumni Association and several individual alumni made the legal maneuver possible, it's unclear whether the institution has the funds to sustain the fight. Shortly after it lost accreditation, SAU told alumni in a virtual town hall meeting that it would need $1 million to fund the lawsuit against their former accreditor, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
While accreditation legal battles can drag on for years, it potentially buys the university time to find a new accreditor. Burgess said previously that the school is working to obtain accreditation from the Transnational Association of Christian Colleges and Schools, or TRACS. Although TRACS has fewer requirements to join than SACSCOC, it still requires schools to demonstrate financial stability.
As of mid-July, university officials estimated that SAU's current debts exceed $47 million. The school is also fighting a $20 million default judgement to pay back a vendor. While Burgess said 127 students were admitted this fall, it was unclear how many students will attend. Enrollment at the end of spring hovered around 50 students. On September 2, the school will begin classes 2, which were moved entirely online in February due to concerns with the facilities after years of deferred maintenance.
The announcement also came with a significant leadership change: Brian Boulware, the university's board chair, will step down from the leadership position. Boulware will stay on the board as a trustee, and trustee Sophie Gibson has taken over as board chair.
As INDY and The Assembly previously reported, Boulware has been at the center of alumni's criticisms in recent years. When one alumni group sued the school in hopes of replacing the board, it accused Boulware and the immediate past board chair of bringing the school "to its knees." He also remains locked in a legal dispute with a former university trustee who sued Boulware in 2022 for defaulting on a $600,000 loan for his cigar bar business. The former trustee is now pursuing Boulware's personal and business assets in bankruptcy court.
Boulware, who has said SAU's administration mismanaged the school's finances for more than a decade unbeknownst to the board of trustees, told The Assembly and INDY in spring he would consider stepping down once the university was on solid ground. The school's press release implies Boulware feels SAU has reached that point.
"After years of committed leadership and in light of increasing professional engagements, Mr. Boulware has chosen to step down from the chair role, confident in the strong foundation now in place for SAU's future," the press release said.