U.S. colleges and universities are a $700 billion a year industry. Unlike other large industries, however, the state and non-profit entities that dominate higher education are not subject to the antitrust and consumer protection standards. Through accreditation requirements enforced by the U.S. Department of Education, colleges have successfully cartelized the industry, mandating practices such as the 120-credit hour degree requirement that raise costs for students without improving educational quality. The accreditation process enables colleges to coordinate behavior, enforce standards, and punish defectors–key functions needed for successful cartelization that would otherwise be illegal under antitrust law. This Article argues that applying standard antitrust principles to higher education would benefit students by enabling innovations in degree programs, reducing costs, and improving quality through enhanced competition. We demonstrate how accreditation serves cartel functions in markets requiring specialized degrees through analysis of its historical development and current operations. We propose reforms to introduce competition into higher education markets.