The American Council of Trustees and Alumni, which released the report Sept. 30, was co-founded in 1995 by Sen. Joe Lieberman, D-Conn., and Lynne Cheney, wife of Vice President Dick Cheney.
The House Subcommittee on 21st Century Competitiveness met Oct. 1 to address the ACTA report and discuss the role of accreditation in post-secondary education, but no conclusion was reached.
The original post-secondary accreditation process was designed a century ago as an optional evaluation to determine which schools met key educational criteria.
The Higher Education Act of 1952 designated six independent regional agencies to handle the accreditation of universities.
In order to receive federal funding for need-based financial aid, colleges and universities must be accredited by one of the regional agencies.
A volunteer committee reviews schools, and if they do not meet criteria, they are given a warning.
If schools still fail to comply, they are put on probation. As a last resort, schools are removed from the accreditation list entirely.
But George Leef, director of higher education policy at ACTA and co-author of the study, said there are flaws with the system.
Leef said the accreditation system does not focus on the overall outcome of students' education and called for the elimination of the program.