The main reason is that the government is the one holding the pursestrings that enables the whole system to operate. If federally-guaranteed student loans cannot be used by these places, their business model collapses entirely. And a big chunk of these terrible for-profit universities are also preying on veterans using their GI Bill benefits.

Accreditation organizations are private. Vetted by the Department of Education, but still private organizations.

It's just an external audit, and there's nothing at all wrong with that. These for-profit organizations are defrauding students by providing very low quality and very expensive educations, all the while passing the low quality standards set by a broken accreditor.

Market solutions don't work when the target audience are young people investing a huge chunk of their lives in education. If a new brand of coffee and it's horrible, you can just try a different brand. A college student doesn't have the same luxury.

Most companies and hilariously the owners have a policy to not hire these graduates.

These schools have high pressure sale teams who target the bottom of the barrel or the clueless leaving the tax payer on the hook for defaulted loans.

Its no different than scammers who target the elderly or children with false claims.

> they are defrauding their students by calling themselves Universities

Yes, that is what I think

Okay, if that's the case, then taking them to court for fraud and stripping them of their accreditation would indeed be reasonable.

They usually form a fake accredation system owned by a private entity recognized by no one but themselves in the same corporate umbrella.

As to why theyre ellegible for student loans (unlike most code bootcamps)....excessive lobbying.

Hence why their credits rarely transfer to other schools.