Saint Augustine’s University Faces $20M Payout After Judge Rules in Favor of Wireless Company

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Saint Augustine’s University Faces M Payout After Judge Rules in Favor of Wireless Company

Financial challenges keep growing for Saint Augustine’s University. A Wake County judge has ordered the historically Black institution to pay over $20 million to a wireless company.

Court documents show that the university owed SBA Connect, LLC, a hefty sum of $20,234,785.30 after failing to make payments. The judge ruled that the university did not defend itself, leading to a default judgment.

This court decision is just part of broader financial troubles. Avaria, an IT company, has also filed a lawsuit against SAU for unpaid bills. However, this judgment primarily focuses on SBA Connect.

Many alumni are frustrated with the university’s financial management. Karole Kimble, a graduate from the class of 1992, expressed concern over the leadership at SAU. “It feels like just another setback,” she said. Kimble, whose family has deep ties to the university, had hoped her children would continue the family legacy. “I can’t even send my children there, and that was always my plan,” she shared.

Kimble worries that without changes in leadership, the university may not recover. “If we don’t change the leadership, these issues will persist,” she noted, stressing the need for better governance.

Recent statistics indicate that nearly 60% of HBCUs have faced increased financial struggles since 2020, largely due to decreased enrollment and the lasting impacts of the pandemic. This situation highlights the need for strategic management and investment in these institutions. Experts argue that enhancing financial literacy among university trustees and implementing transparent budgeting processes could help avert such crises in the future.

Additionally, SAU is fighting to regain its accreditation. After the denial of an appeal in March, arbitration is set for June 26. This process is crucial, as losing accreditation can severely impact the university’s funding and reputation.

While the university faces significant hurdles, the alumni community’s reaction emphasizes the importance of accountability and strategizing for a healthier financial future. The call for leadership changes at SAU reflects a broader concern within many educational institutions today.

For further insights on the challenges faced by historically Black colleges and universities, the U.S. Department of Education’s reports provide valuable information. You can find more details on these trends in higher education [here](https://www.ed.gov).



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