Center for Excellence v. Accreditation Alliance

CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 5, 2026
Docket25-1372
StatusPublished

This text of Center for Excellence v. Accreditation Alliance (Center for Excellence v. Accreditation Alliance) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Center for Excellence v. Accreditation Alliance, (4th Cir. 2026).

Opinion

USCA4 Appeal: 25-1372 Doc: 37 Filed: 02/05/2026 Pg: 1 of 19

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 25-1372

CENTER FOR EXCELLENCE IN HIGHER EDUCATION, INC.,

Plaintiff - Appellant,

v.

ACCREDITATION ALLIANCE OF CAREER SCHOOLS AND COLLEGES, d/b/a Accrediting Commission of Career Schools and Colleges,

Defendant - Appellee.

Appeal from the United States District Court for the Eastern District of Virginia, at Alexandria. Rossie David Alston, Jr., District Judge. (1:22-cv-01223-RDA-WEF)

Argued: December 9, 2025 Decided: February 5, 2026

Before DIAZ, Chief Judge, and WYNN and HARRIS, Circuit Judges.

Affirmed by published opinion. Judge Wynn wrote the opinion, in which Chief Judge Diaz and Judge Harris joined.

ARGUED: David Aleksander Obuchowicz, GOMBOS LEYTON, PC, Fairfax, Virginia, for Appellant. Michael Randolph Shebelskie, HUNTON ANDREWS KURTH LLP, Richmond, Virginia, for Appellee. ON BRIEF: Lewis F. Powell, III, HUNTON ANDREWS KURTH LLP, Richmond, Virginia, for Appellee. USCA4 Appeal: 25-1372 Doc: 37 Filed: 02/05/2026 Pg: 2 of 19

WYNN, Circuit Judge:

We generally defer to approved accreditation agencies in deciding whether a

university deserves accreditation. When that accreditation decision is affirmed by an

arbitrator, our review is doubly deferential.

In this case, an agency withdrew the accreditation of an online university. An

arbitrator then affirmed that withdrawal. Trying its luck in district court instead, the

university then unsuccessfully sought to overturn that decision—through both a motion to

vacate and a complaint.

Deferring to the arbitrator, who himself deferred to the accreditation agency, we

affirm.

I.

A.

To receive federal funding (and thus, realistically, to survive), an educational

institution must be accredited. See 20 U.S.C. § 1002(b)(1)(A); Career Care Inst., Inc. v.

Accrediting Bureau of Health Educ. Schs., Inc., No. 1:08-cv-1186, 2009 WL 742532, at *1

(E.D. Va. Mar. 18, 2009). However, the federal government does not accredit educational

institutions directly. Instead, the government has outsourced accreditation to private

groups. See 20 U.S.C. § 1099b. One such group is the Defendant, Accreditation Alliance

of Career Schools and Colleges (“the Alliance”). The Alliance’s Standards of Accreditation

set minimum standards for graduation and employment rates as benchmarks for

accreditation.

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Plaintiff, the Center for Excellence in Higher Education (“CEHE”), at one time

operated several schools accredited by the Alliance. In 2018, after several years of

complaints against CEHE’s member schools, the Alliance placed the CEHE system on

probation for a persistent failure to meet its benchmarks. The Alliance faulted CEHE for

“widespread and persistent below-benchmark rates of graduation and employment” and

questioned “whether the CEHE system of schools is misaligned with [the Alliance]’s

mission and purpose to an irremediable extent.” J.A. 206–07. 1

The Alliance gave CEHE until September 7, 2020, to remedy its noncompliance.

However, the Alliance reminded CEHE that it was “under no obligation to wait for the

maximum timeframe to expire and may take an adverse action prior to the expiration of

the maximum allowable timeframe.” J.A. 72.

Once on probation, CEHE spent roughly $10 million on certain initiatives to bring

its member schools into compliance, suspended enrolling new students in its in-person

institutions, and eventually shifted all new enrollments to a single, online school,

Independence University (“IU”).

Throughout the probationary period, the Alliance issued three different orders that

continued the probation: in May 2019, October 2019, and July 2020. Each asked for more

information but ultimately concluded that CEHE was still out of compliance with the

Alliance’s accreditation standards.

1 Citations to the “J.A.” refer to the Joint Appendix filed by the parties in this appeal. 3 USCA4 Appeal: 25-1372 Doc: 37 Filed: 02/05/2026 Pg: 4 of 19

The July 2020 order noted that the Alliance was “concerned about the magnitude of

improvement required to demonstrate compliance with accrediting standards, in context of

the schools’ maximum timeframe to remain on Probation.” J.A. 135. For example,

[o]f particular concern is that IU continues to report below- benchmark rates of student achievement. Of the 13 active (non- discontinued) programs that have been operational long enough to be reportable, the school has reported above- benchmark rates of student achievement for only four. The rates reported for the other nine will require significant improvements in order to achieve acceptable rates. The lack of significant improvement over the last three years calls into question the depth of assessment the school has conducted, and therefore does not provide assurance that the current plans will have the needed impact on rates of student achievement.

Id. The Alliance also warned that “[i]f the school does not bring itself into compliance

within the period specified . . . , the [Alliance] will be obligated to take adverse action.” Id.

However, recognizing that “the focus and operational status of the school system has

altered drastically since [the Alliance’s] review in September 2019” because of CEHE’s

strategic decision to shift to fully online education, J.A. 133, the Alliance extended the

timeframe to comply to May 31, 2021.

On December 30, 2020, CEHE responded one final time, this time with a 3,578-

page action plan, complete with projected future graduation rates at IU. But on April 22,

2021, the Alliance informed CEHE that it was officially withdrawing its accreditation. In

justifying its decision, the Alliance pointed out that “the history is significant in terms of

the length of time afforded IU to come into compliance with standards, significant in terms

of the breadth of the failure throughout the school’s programmatic offerings, and

significant in terms of the number of students the school failed to serve.” J.A. 205.

4 USCA4 Appeal: 25-1372 Doc: 37 Filed: 02/05/2026 Pg: 5 of 19

As to performance, the Alliance noted that even in the latest update, CEHE still

“reported below-benchmark rates of student achievement in 82% (14 of 17) programs that

are active and have been operational long enough to be reportable.” J.A. 210. It also noted

that the “school’s projections and trend data show that the school’s current efforts will not

achieve minimum student achievement benchmarks for years.” J.A. 213. And it ultimately

concluded that, “[b]ased on the length of time the [Alliance] has already afforded the school

to make improvements or take programmatic actions, the [Alliance] cannot continue to

defer a decision regarding the viability of the school’s operations based on projected

student achievement rates.” J.A. 218.

B.

CEHE appealed the decision to the Alliance’s internal Appeals Panel.

In its appeal, CEHE argued that (1) its efforts to turn IU around were working before

the Alliance abruptly withdrew accreditation, (2) the Alliance was not consistently

applying its standards across schools, and (3) the withdrawal was a continuation of

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