What exactly is accreditation? The current system was created by the federal government during the Great Society era to ensure that federal funds flowed only to high-quality educational institutions. In passing the Higher Education Act over 40 years ago, Congress linked accreditation and federal student aid to prevent students from squandering money on diploma mills. According to the Act, recognized accreditors serve as a "reliable authority" on the "quality of education or training offered." The fact is: Today, virtually all colleges and universities in the United States are accredited (sometimes by more than one accrediting body). Yet there is widespread--and justifiable--concern that college quality has been on a steady decline. And while accreditation may have been well-intended, it is no exaggeration to say that it is now the greatest barrier to innovation in higher education and a major driver of skyrocketing costs--not to mention a threat to your role as a trustee. This report provides some fast facts on this system that serves as a gatekeeper for $175 billion in student financial aid.