In 1978, the University of Phoenix was among the first for-profit universities to receive accreditation from a prestigious regional agency: the Higher Learning Commission of the North Central Association of Colleges and Schools. Its accreditation marked a turning point in broader acceptance for the for-profit model in higher education and gave the University of Phoenix access to its primary source of revenue: federal financial aid. This case offers an example of how innovation in US higher education can happen rapidly and with relatively little controversy. The decentralised nature of accreditation means that new schools can shop around to find an accreditor that best meets their needs. Because accreditors are so closely entwined with federal actors, they will greenlight innovative programmes when they serve the federal interest. Finally, because higher educational quality is difficult to assess, accreditors can use output-based metrics, which are better at supporting novelty than input-based standards.