Part of the problem may be the accreditation process. For federal student aid, and also professional licensure for certain occupations (psychology for example)

Part of the problem may be the accreditation process. For federal student aid, and also professional licensure for certain occupations (psychology for example), you need to attend an accredited program. But the accreditation process is controlled by existing institutions and people who work at existing institutions. One way to open up this market to innovation would be to try to get the laws changed about accreditation. Make it so it's much easier to objectively prove that the institution is providing ongoing value to its students, and receive accredited status without significant involvement by people who are not incentivized to encourage innovation. People might be involved in the process, but rather than making subjective judgements about whether the program is good enough, make the measures objective. Then the person involved is really just checking boxes. If they refuse to check the boxes despite evidence, there should be an appeal process with civil damages for any clearly unnecessary delays caused.