Major financial problems loom for this small college.

The Pittsburgh Post-Gazette reports.

Cheyney University placed on probation by accrediting body

A regional accrediting body has placed financially-ailing Cheyney University on probation, citing “insufficient evidence” that the state-owned university and historically black college meets the body’s standard for institutional resources.

The action by the Middle States Commission on Higher Education comes nearly two months after a consultant, hired to examine apparent mishandling of U.S. Department of Education federal student aid, found that Cheyney may have to return $29.6 million, more than half the amount it received from the federal agency between 2011 and 2014.

It also comes as campus and State System of Higher Education officials work to reverse steep enrollment losses and develop a plan for Cheyney’s long-term health.

Richard Pokrass, a commission spokesman, said today that Cheyney has two full years to return to compliance and, with adequate progress, could do so earlier. He noted that the commission’s intent is not to be punitive but to help campuses improve.

“Most institutions that are placed on probation or on warning tend to come back into compliance,” he said. “The real key for students to understand is that the school remains accredited while on probation and that they remain eligible for financial aid.”

In a statement, interim Cheyney President Frank Pogue said “key administrators have begun meeting to develop a step-by-step process to prepare our response to Middle States.”