Center for Excellence v. Accreditation Alliance

Court of Appeals for the Fourth Circuit·Decided February 5, 2026·No. 25-1372·Published

Opinion

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.

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.

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.

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 (nondiscontinued ) programs that have been operational long enough to be reportable, the school has reported abovebenchmark 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.

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 unnecessarily punitive actions towards CEHE. To supplement its appeal, CEHE asked the Alliance for extensive discovery relating to probationary actions taken against other schools. But the Alliance denied that request, noting that such information was both confidential and irrelevant to whether CEHE was meeting its benchmarks. The Alliance’s executive director explained to CEHE that the rules governing the appeals process “make clear that the [Alliance], in making decisions as to any particular school, considers only that school’s file.” J.A. 257. Still, CEHE found some publicly available probationary letters to other schools and included them in its appeal.

The Appeals Panel affirmed the Alliance’s decision to withdraw CEHE’s accreditation.

Free access — add to your briefcase to read the full text and ask questions with AI

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

Center for Excellence v. Accreditation Alliance (Center for Excellence v. Accreditation Alliance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related