Unaccredited institutions of higher education are colleges, trade schools, seminaries, and universities which do not have formal educational accreditation.
Educational institutions may not be legally required to obtain independent accreditation, depending on local laws. Academic degrees or other qualifications from such unaccredited institutions may or may not be accepted by civil service or other employers, depending on the local laws, the institution's reputation, and the industry standards.
An institution may not obtain or maintain accreditation for one of several reasons. As accreditation processes often require several years' work, a new institution may not yet have completed the initial accreditation process. A long-established institution may have lost accreditation due to financial difficulties or other factors. Other institutions (for example, some longstanding Bible colleges and seminaries) choose not to participate in the accreditation process because they view it as a government infringement of their religious, academic, or political freedom.
In some countries, unaccredited institutions are not allowed to exist legally. Therefore any such schools will fall under the label of fraudulent diploma or accreditation mills.
Australia
In Australia, it is a criminal offence to use the term "university" or to purport to offer university degrees (Bachelors, Masters, Doctors) without government authorization. For government universities and some private institutions, this authorization is generally given in the form of an Act of a State or Federal Parliament, specifically referring to that institution. (Each state will recognize the institutions authorized under the law of the other states.)
Private institutions may apply to TEQSA for authorisation to offer recognised higher education diplomas and degrees.
Separate to this, there is also authorisation under the Higher Education Funding Act to receive federal government funds for students; this is a separate process from authorisation to grant degrees, so some institutions are entitled to grant degrees but not to receive government funds to do so.
There is also registration under CRICOS (the ESOS Act) - a student visa can only be issued to a student if they are studying at an institution with a valid CRICOS registration.
India
According to the India Department of Education, regarding institutions without accreditation or an Act of Parliament, "It is emphasized that these fake institutions have no legal entity to call themselves as University/Vishwvidyalaya and to award ‘degrees’ which are not treated as valid for academic/employment purposes."
Ireland
Legitimate higher education qualifications in Ireland are placed on, or formally aligned with, the National Framework of Qualifications. This framework was established by the National Qualifications Authority of Ireland in accordance with the Qualifications (Education and Training) Act (1999). It is illegal under the Universities Act (1997) for anybody offering higher education services to use the term "university" without the permission of the Minister for Education and Science. It is likewise illegal under the Institutes of Technologies Acts (1992–2006) to use the term "institute of technology" or "regional technical college" without permission.
The Netherlands
Dutch academic titles are legally protected and can only be used by graduates from accredited Dutch institutions of higher education. Illegal use is considered a misdemeanor and subject to legal prosecution. Holders of foreign degrees need special permission before being able to use a recognised Dutch title, but they are free to use their own foreign title (untranslated).
New Zealand
The New Zealand Education Act prohibits the use of the terms "degree" and "university" by institutions other than the country's eight accredited universities. In 2004 authorities announced their intention to take action against unaccredited schools using the words "degree" and "university," including the University of Newlands, an unaccredited distance-learning provider based in the Wellington suburb of Newlands. Other unaccredited New Zealand institutions reported to be using the word "university" included the New Zealand University of Golf in Auckland, the online Tawa-Linden and Tauranga Universities of the Third Age, and the Southern University of New Zealand. Newlands owner Rochelle M. Forrester said she would consider removing the word "university" from the name of her institution in order to comply with the law.