Louisburg College has been put on probation by the major regional accrediting agency.
The action happened at the Southern Association of Colleges and Schools' Commission on Colleges meeting this week in San Antonio, Texas.
Louisburg, the state's only private, two-year college, has struggled with financial problems and burdensome debt in recent years. The college will be on probation for a year related to four unspecified standards of the accrediting organization, a news release from Louisburg said.
Louisburg was placed on warning status a year ago. Probation is more serious, according to a description of sanctions on the association's web site. If the college loses accreditation, it would be almost impossible for Louisburg to remain open, because its students would no longer be eligible for federal financial aid.
A group from the accrediting body will assess the college again after a site visit next fall. At the meeting in Texas, Louisburg leaders were asked questions about admissions, academic support, financial recovery and overall stability of the institution.
The college is trying to emerge from its trouble with the help of a new president, Mark La Branche, who was appointed last month.
Louisburg leaders have made progress, Rodney Foth, interim president, said in a news release. "We must continue our current efforts, which will result, absent of any unforeseen events, in the Commission lifting the probation sanction in December 2009," Foth said.