Unstable finances keep Martin University on probation

• Martin University has been on probation with its accrediting agency since February 2014.

Continuing concerns about Martin University’s unstable finances have led its college accreditation agency to keep the institution on probation.

In a decision released this week, the Higher Learning Commission said Martin University had made progress on academic issues, such as raising low retention rates and developing strategies for student success.

But the agency said Martin “remains in a financially precarious position,” according to accreditation documents.

Lacking a hefty endowment, the school says it funds itself largely through enrollment, which has been declining.

In reviewing Martin’s probation status at its June meeting, the Higher Learning Commission also noted that the university might struggle to retain faculty without being able to offer raises and few benefits. It worried about Martin using faculty layoffs as a tactic to balance the operating budget.

Martin University has been on probation with the Higher Learning Commission since February 2014. The agency said the university must prove an improved financial situation by August 2016, before a scheduled February 2017 decision on the probation status.

Accreditation qualifies colleges to receive federal financial aid and allows students to transfer credits between institutions.

On Indianapolis’ Eastside, Martin is a private nonprofit college that serves mostly black adult learners. It is Indiana’s only predominantly black institution, led by former Indianapolis Public Schools chief Eugene White.

Call Star reporter Stephanie Wang at (317) 444-6184. Follow her on Twitter: @stephaniewang.