Actually it's worse. If the accreditation agency had went the distance, UNC stood to lose 100's of millions of dollars. Mind you this is only a one year punishment, and it's fairly easy to keep clean for the duration, but if new allegations surface and are proven, then no federal funding, no federal loan guarantees, and all sorts of hell for the administration. Universities depend on federal funding (it's called soft money positions in academia) for the bulk of their research and staffing. Students depend on Sally Mae for loans. If you don't get those, you don't operate a University.