http://www.collegesanddegrees.com/accreditation#loses
I don't know how this works. BYU is probably already preparing its legal strategy to challenge this.
The lever point here is the loss of federal funds in the form of grants and loans. It would be a severe hardship on BYU students to lose access to these. Given the large number of Mormon families with many children and modest means. Another favored way that Mormon kids pay for college is qualifying for Pell grants after marriage at age 20.
It would be devastating to any university.
http://www.wvgazettemail.com/article...GZ01/140529924
Would the church divest itself of BYU and attempt to keep accreditation by liberalizing its policies?
I doubt it. That would be seen as a huge defeat by the church, I think.