Saint Augustine’s University will offer no classes or educational programs this fall, leaving the 158-year-old historically Black university without academic offerings as it works through bankruptcy and an uncertain financial future, The News & Observer reports.
The Raleigh, North Carolina, university has paused plans to launch eight online, nondegree programs in September covering subjects including artificial intelligence, programming, and public health. The courses would have cost students between $1,100 and $4,500.
The decision follows months of financial and accreditation turmoil. Saint Augustine’s announced April 28 that it would enter a voluntary Chapter 11 restructuring process and end its legal fight over accreditation. The university said its accreditation was expected to conclude on May 15.
University attorney Ciara Rogers told U.S. Bankruptcy Judge David Warren on Aug. 20 that pausing the online programs would help reduce payroll and other expenses. The programs were not expected to generate significant cash flow.
Saint Augustine’s has also ended its longtime partnership with Ed2Go, a third-party provider of virtual continuing education courses. Students currently enrolled can complete their programs.
Bankruptcy administrator Brian Behr supported the decision, saying the university should prioritize emerging from bankruptcy in a stronger financial condition.
“I’m starting to feel good that there’s a possibility that some entity that performs the services that St. Augustine’s provided will continue to exist on that property and provide those services into the future,” Behr said. “So that’s a positive development.”
Warren, however, described the university as “essentially closed.”
The university is also exploring ways to leverage its real estate. It has applied to hire Avison Young to advise on property strategy as officials consider selling peripheral portions of the 105-acre campus, valued at approximately $200 million. Court filings show the firm would receive a $50,000 retainer and a percentage of any sale, capped at $7.5 million.
Meanwhile, Saint Augustine’s Board of Trustees has enlisted former Massachusetts Institute of Technology Chancellor Phillip Clay as a pro bono adviser. Clay, who has studied historically Black colleges and universities and their long-term viability, signed paperwork for the role Aug. 1.
Saint Augustine’s is expected to return to bankruptcy court Aug. 26.
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