Martin University in Indiana has been placed on probation by its accrediting agency in part because of its poor retention and graduation rates, The Indianapolis Star reported.

The North Central Association's Higher Learning Commission cited concerns over Martin University's financial and operational stability when it placed the school "on notice" in June 2012. When those concerns were not fully resolved, the commission placed it on probation on Feb. 27. The school retains its accreditation while on probation.

In placing the university on probation, the accrediting agency cited concerns over the university's management stability, sources of ongoing funding, its budget deficit, and poor retention and graduation rates.

"Nothing in their concerns is uncorrectable. We think we will have them all addressed by August," Martin University president Eugene White told the Indianapolis Recorder.

The accrediting agency said the University set modest goals to improve low retention and graduation rates without identifying the causes or strategies to address them.

According to the probation letter from the commission, the school has struggled with a decline in the percentage of students who return after their first year. Only 2.6 percent of the school's full-time students graduated within four years, and the university's six-year completion rate - 14.3 percent - was also low.

White, the former Indianapolis Public Schools superintendent, said the schools turnaround starts with him. Putting the school on probation was a way for the commission to "raise the ante" and make sure the University understood the serious issues, he said.

He said the school has paired all students with faculty mentors to help keep them on track. Martin University needs a retention specialist to continue improvement, White said, but doesn't have the money right now to hire one.

"What I fear," White said, "is that some people may use (probation) as an excuse to dissuade students from attending. And we don't need that."