Launching new institutions: Solving the chicken-or-egg problem in American higher education

Abstract

One of the most debated areas of US higher education policy is the federal government’s reliance on accreditation agencies as gatekeepers of student financial aid programs. For years, observers have blamed accreditation agencies for all manner of ills, including low academic standards, intrusive meddling in university affairs, the lack of innovation and new institutions in higher education, and even rising tuition costs. In this context, this paper lays out one potential solution to a specific flaw in the current system. Whether or not current accreditation reform proposals lead to progress, the existing system will remain intact for the foreseeable future; as such, would-be reformers must consider ideas that can encourage innovation and opportunity in the near term.