A diploma mill (also known as a degree mill) is an organization that awards academic degrees and diplomas with substandard or no academic study and without academic approval by officially recognized educational accrediting bodies or qualified government agencies. The purchaser can then claim to hold an academic degree, and the organization is motivated by making a profit. These degrees are often awarded based on vaguely construed life experience. Some organizations claim accreditation by non-recognized/unapproved accrediting bodies set up for the purposes of providing a veneer of authenticity.
Various schemes have been implemented to curb the proliferation of diploma mills, and a number of states have passed bills that make it illegal for an organization to confer degrees without accreditation.
In recent years unaccredited for-profit higher education institutions have specialized in enrolling foreign students and have been called sham schools.
The United States does not have a federal law that would unambiguously prohibit diploma mills, and the term "university" is not legally protected. The United States Department of Education lacks direct plenary authority to regulate schools and, consequently, the quality of an institution's degree. Under the terms of the Higher Education Act of 1965, as amended, the U.S. Secretary of Education is required by law to publish a list of nationally recognized accrediting agencies that the Secretary determines to be reliable authorities on the quality of education or training provided by the institutions of higher education that they accredit.
Diploma mills are mainly found in the U.S. jurisdictions which have not adopted tough laws to prohibit them. Also, some degree mills have taken advantage of the U.S. Constitution's protection of religion by representing themselves as Bible colleges, since in many jurisdictions religious institutions can legally offer degrees in religious subjects without government regulation. Nevertheless, some religious colleges and seminaries have been fined for issuing degrees without meeting educational requirements.