{"id":1158,"date":"2026-05-27T22:09:51","date_gmt":"2026-05-27T22:09:51","guid":{"rendered":"https:\/\/durhammovinghub.com\/?p=1158"},"modified":"2026-05-27T22:09:51","modified_gmt":"2026-05-27T22:09:51","slug":"this-university-in-raleigh-doesnt-have-a-single-student-can-it-really-survive","status":"publish","type":"post","link":"https:\/\/durhammovinghub.com\/?p=1158","title":{"rendered":"This university in Raleigh doesn\u2019t have a single student. Can it really survive?"},"content":{"rendered":"<p class=\"summary\">AI-generated summary reviewed by our newsroom.<\/p>\n<p><a href=\"https:\/\/www.newsobserver.com\/news\/nation-world\/national\/article280707640.html\">Read our AI Policy.<\/a><\/p>\n<p>There\u2019s one university in Raleigh that doesn\u2019t have any students. It\u2019s <a href=\"https:\/\/www.newsobserver.com\/news\/business\/article315559122.html\" rel=\"Follow\" target=\"_blank\">bankrupt<\/a>, it has lost its accreditation, <a href=\"https:\/\/www.newsobserver.com\/news\/local\/education\/article315726018.html\" rel=\"Follow\" target=\"_blank\">campus is empty<\/a>, and it owes approximately $74 million to hundreds of people and entities.<\/p>\n<p>Read more <a href=\"https:\/\/durhammovinghub.com\/?p=1156\">Who makes the best hush puppies in the Triangle? Tell us your favorites<\/a><\/p>\n<p>But it still says it has a future.<\/p>\n<p>That would be St. Augustine\u2019s University, the 160-year-old historically Black university in Raleigh. St. Augustine\u2019s began as a school for formerly enslaved people, and is one of the oldest HBCUs in the South. But this spring, all students \u2014 of which there were around five remaining \u2014 had to transfer out. Accreditation expired on May 15, after the university abandoned its court battle with its accreditor out of financial necessity.<\/p>\n<p>At bankruptcy court in downtown Raleigh on Wednesday, representatives of St. Augustine\u2019s answered difficult questions from court administrators and creditors about its financial position and how it plans to make good on what it owes.<\/p>\n<p>The university reports just $426,000 in cash.<\/p>\n<p>One thing St. Augustine\u2019s has going for it? Its land. It owns an 105-acre property in Raleigh valued at $200 million. <a href=\"https:\/\/www.newsobserver.com\/news\/local\/education\/article315728737.html\" rel=\"Follow\" target=\"_blank\">Now, the school is considering selling off parts of that land.<\/a><\/p>\n<p>Ciara Rogers, the university\u2019s lawyer, said that \u2014 considering the value of surrounding land, the rapid development in the area, new bus lines, and proximity to attractions like the governor\u2019s mansion \u2014 \u201cthe highest and best use\u201d of the land \u201cis probably going to be development.\u201d<\/p>\n<p>She said she\u2019s seen proposals for different kinds of housing, as well as a proposal for a senior care facility.<\/p>\n<p>Sophie Gibson, the chair of St. Augustine\u2019s board of trustees, described putting her \u201cblood, sweat, and tears\u201d into the effort to turn things around at the university. On the board, which has recently been largely reconstituted, there is an \u201cintention to do things differently\u201d and \u201cstop the bleeding,\u201d Gibson said. In the past, financial malfeasance on the part of university leaders plagued the school\u2019s finances.<\/p>\n<p>The university cited stark decreases in enrollment and the increased market share of other colleges and universities in the area as reasons for its financial decline. No students have lived on campus since 2024.<\/p>\n<p>Though its degree-giving powers are over for the time-being, St. Augustine\u2019s says it one day hopes to pursue reaccreditation and is working to prepare some certification and apprenticeship programs for next fall. It has 25 current employees, and its financial partner Self-Help Ventures Fund, is footing the bill for payroll and other operational expenses. Fewer than five actually work on campus.<\/p>\n<p>Those 25 employees are focused on saving the university and securing its future.<\/p>\n<p>\u201cIf dedication alone could get this across the finish line, it would,\u201d bankruptcy administrator Brian Behr said at the hearing \u2014 but there are major problems that may require more than that, he said.<\/p>\n<p>Wednesday\u2019s creditors\u2019 meeting and court hearing illuminated new details about the situation at St. Augustine\u2019s.<\/p>\n<p>Read more <a href=\"https:\/\/durhammovinghub.com\/?p=1154\">NC abortion bill inspired a backlash. Why it\u2019s unlikely to move forward now<\/a><\/p>\n<p>\u201cWe have no money,\u201d Gibson said at the meeting. At the same time, though, she said: \u201cWhat I\u2019m trying to do is create a roadmap [so that] we can have a brighter day and make sure whoever is owed their money gets their money back.\u201d<\/p>\n<p>All former employees should file a claim with the court if they intend to try to collect what is owed to them, Behr recommended. And if you have a pension promised to you by the university, Behr recommends hiring a lawyer.<\/p>\n<p>The university intends to pay back all of its unsecured creditors, according to Rogers. Creditors with unsecured claims include the IRS, to which the university owes $14 million, and more than 300 other individuals and entities. Secured creditors have debts backed by collateral or property. That includes the university\u2019s food management service, its IT service, its field turf provider, Nissan, Xerox, Cisco, and others.<\/p>\n<p>That includes other federal agencies, which likely means that the university misused federal grant money, according to Benjamin Higgins, a representative of the U.S. Attorney\u2019s Office.<\/p>\n<p>\u201cThe university was on such a consistent decline, and &#8230; you have to have revenue somehow, and they were taking from one [grant] in order to keep operations alive,\u201d Gibson said.<\/p>\n<p>The university\u2019s books and records are not up to date. Leaders are working on hiring an accountant and auditor to get everything in order so that it can file its most recent tax returns and accurately report its situation to bankruptcy court.<\/p>\n<p>Since its hearing earlier this month, which focused largely on the condition of campus, the university has stepped up its security efforts. It used emergency funding to fix broken fences, board up broken windows, and increase security patrols.<\/p>\n<p>The university also must secure personal data on students and employees, both in file cabinets on campus and in digital form in the cloud. It owes nearly $2 million to Ellucian Company, a vendor of student information systems. The university is working on an agreement about how that might be paid.<\/p>\n<p>\u201cWe are hopeful that we\u2019ll be able to reach an agreement that is affordable for the debtor, because we do recognize the value of that information and the debtor\u2019s obligation to keep that information secure,\u201d said Rogers.<\/p>\n<p>Judge David Warren of U.S. Bankruptcy Court for the Eastern District of North Carolina specifically mentioned preserving the physical archives at a historic institution like St. Augustine\u2019s.<\/p>\n<p>Read more <a href=\"https:\/\/durhammovinghub.com\/?p=1150\">Jessica Alba Shares Rare Comment About Love Life Amid Danny Ramirez Romance<\/a><\/p>\n<p>The university is likely to be back in bankruptcy court on June 30.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>St. Augustine\u2019s University in Raleigh is bankrupt, accreditation lapsed, campus empty and facing $74M in debt while weighing land sales to stay afloat.<\/p>\n","protected":false},"author":1,"featured_media":1157,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-read-todays-edition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>This university in Raleigh doesn\u2019t have a single student. 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