Accredited institutions have agreed to have their institutions and programs reviewed to determine the quality of the education and training they provide. If an institution is accredited by a recognized agency, its teachers, coursework, and facilities, equipment, and supplies are reviewed on a routine basis to ensure students receive a quality education and get what they pay for.
Attending an accredited institution is often a requirement for employment and can be helpful later on if you wish to transfer academic credits to another institution.
Let's consider the state of Hawaii.
The state of Hawaii's degree-granting institutions fall into one of two categories: accredited or unaccredited.
State law explicitly defines an unaccredited institution as a "degree-granting institution" that is not accredited or is not a candidate for accreditation by at least one nationally recognized accrediting agency listed by the United States Secretary of Education.
Unaccredited Degree-Granting Institutions
The Hawaii government clearly outlines what unaccredited degree-granting institutions (UDGI) represent. UDGIs, which offer courses, programs, or degrees, or maintain a campus or an administrative, corporate, or other address in Hawaii, are subject to Hawaii's UDGI law, codified in Chapter 446E of the Hawaii Revised Statutes. Enforcement responsibility lies with the Office of Consumer Protection. Hawaii does not accredit, license, or approve any unaccredited institutions.
Chapter 446E, Subsection 5, prohibits unaccredited institutions from indicating or suggesting that the state licenses, approves, or regulates their operations. Further, they cannot offer Juris Doctor, Master of Laws, Doctor of Medicine, or equivalent degrees. Furthermore, they are prohibited from issuing any degrees unless they have a Hawaii office, a Hawaii resident employee, and 25 enrolled students in Hawaii.
Additionally, unaccredited institutions are prohibited from accepting tuition or other payments unless they are in complete compliance with all the provisions of Chapter 446E. Unaccredited institutions are prohibited from claiming that they have applied for future accreditation.
Under Hawaii law, unfair acts or practices are subject to fines of not less than $500 but no more than $10,000 for each violation.

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