The university continues to wade through the muck after Jerry Sandusky's sex abuse scandal. (Flickr/Creative Commons)

According to CNN, the Middle States Commission on Higher Education warned the university of its thin-ice status earlier this month. If accreditation is yanked, the school faces losing eligibility for federal student aid programs, guaranteed student loans, federal research grants and aid from the state, a commission spokesman said.

Penn State has already responded with a proactive attitude. "This action has nothing to do with the quality of education our students receive," Vice Provost of Academic Affairs Blannie Bowen posted to the school's website Monday. 

The commission's complaints are primarily with the university's governance and alleged failure to provide "accurate, fair and complete information" about the abuse and cover-up behind closed doors. 

Penn State will have to report by Sept. 30 on its plans for compliance, and a commission team will visit the university to evaluate performance.

Read the full story here, and check out more of Neon Tommy's Penn State coverage here.

Reach Executive Producer Catherine Green here; follow her here.