In 2018, Robert Gravely, a former NAU official, filed a lawsuit alleging that the school defrauded the United States government out of millions of dollars in a student aid program, unlawfully paid bonuses to university employees for recruiting students and rigged the accreditation for its medical assisting program. NAUH also mortgaged real property for $8 million in loans. In 2018, more campus closings were also planned. In September 2018, the Rapid City Journal detailed NAUH's declining enrollment and financial difficulties. On September 28, 2018, NAUH received a delisting warning from NASDAQ. On December 28, 2018, the NAUH Board agreed to voluntarily delist from the NASDAQ. On January 22, 2019, NAUH announced that "the Company had $0.5 million of unrestricted cash and cash equivalents and a working capital deficiency of $8.7 million. These factors, among others, raise substantial doubt regarding the Company’s ability to continue as a going concern." On February 15, 2019, NAUH announced Thomas Bickart as their new Chief Financial Officer. Mr. Bickart was CFO at TCI College of Technology from 2013 to 2016 and later worked at EdisonLearning, Inc. to restructure its operations. On March 16, 2019, National American University announced that most of its 24 ground campuses would be closed, except for Ellsworth Air Force Base and King's Bay Naval Submarine Base. On March 31, 2019, National American University granted honorary doctorates to several people in India, including Astrologer Dr Sohini Sastri. On April 15, 2019, National American University reported that they must post a letter of credit for either 50% or 15% of its Title IV awards in order to continue participating in the program. The operation faced further pressure with an $800,000 debt payment due May 17, 2019, and an ongoing federal False Claims lawsuit. On May 10, 2019, NAUH received an $8.5 million loan from the Center for Excellence in Higher Education. The loan was set at a 7 percent interest rate with a $250,000 origination fee. On May 24, 2019, Inside Higher Education reported that students at National American University had been surprised that campuses were closing. On May 29, 2019, Rapid City reported that the city would purchase a portion of the Rapid City campus for a homeless resource center.
Academics
Enrollment
Total student enrollment has declined from 9,519 students in 2015 to 3,398 students in February 2019. In March 2019, National American University announced that it was closing most of its remaining 24 campuses, including its campuses in Rapid City and Sioux Falls. and is now an online university.
Programs
National American University offers Bachelor of Science degrees, Associate of Applied Science degrees, and diplomas in accounting, management, business administration, allied health, criminal justice, healthcare management, health and beauty management, and information technology. In August 2008, NAU's graduate studies program was renamed the Harold D. Buckingham Graduate School, in honor of the late owner. Graduate degree programs include an M.B.A., a Master of Management degree, an Ed.D in Community College Leadership, and Master and Doctoral degrees in Strategic Security, Terrorism and Counterterrorism Studies, and Intelligence Management.
Distance learning
In 1996 National American University began to develop online courses and degree options for students across the United States and internationally. Online programs include associate’s, bachelor's and master's degrees in accounting, business, information technology, strategic security, and health care. Students are also provided access to classes and extensive campus resources including learning resource center services, tutoring services, counseling services, and computer support through a student portal. In 2012, 53 percent of NAU's students were studying online, with an additional 17 percent taking some classes online. In 2018, 77 percent of NAU's students were studying online, with an additional 12 percent taking some classes online.
Accreditation
NAU is regionally accredited by the Higher Learning Commission. Several NAU programs are separately accredited by multiple national, educational and professional associations. NAU's baccalaureate and master's degree programs in nursing are also accredited by the Commission on Collegiate Nursing Education
Financial Aid and Tuition
In the 2017-2018 award period, National American University had 5,660 students receiving benefits from Pell Grants.
According to the College Scorecard, NAU students have a median income of $34,800 after attending. The graduation rate is 17 percent. The student loan repayment rate is 24 percent.
National American University Holdings, Inc.
National American University Holdings, Inc., was a publicly traded corporationholding company for NAU and other assets. The corporation was established in 2009 and is located in Rapid City, South Dakota.
