The only tertiary institution in the Northern Marianas may have its accreditation withdrawn in six months.
The Northern Marianas College has been on probation since February 2007 because of a number of organisation problems dating back to 1990.
There is concern that the college has not been conducting regular programme reviews and about the high turnover rate of deans and presidents.
The Accrediting Commission for Community and Junior Colleges took the action against NMC because the college still has not addressed concerns previously raised by the commission.
Accreditation is important because it proves to the public that a college meets standards of academic quality, and allows students to access federal financial aid programs.
In addition, many institutions look at accreditation when deciding whether to allow transfer of credits.