According to Steve Levicoff, in his book Name It and Frame It, from Chapter 10, which discusses TRACS historically:

 "Finally, there are two schools listed in this chapter which are accredited by TRACS, the Transnational Association of Christian Colleges and Schools (see discussion in Chapter 3). At this writing, TRACS is recognized by the United States Department of Education but not by the Commission on Recognition of Postsecondary Accreditation (CORPA). Following hearings in May 1995, the Department of Education put the reapproval of TRACS on hold for eighteen months, at which time further hearings will be held on their status (TRACS is still considered an approved accreditor in the meantime). Pending a determination of that status, I have chosen to err on the side of caution and have listed schools holding their only accreditation with TRACS in this chapter. I admit that this is partially an editorial decision based on my skepticism of the past performance of TRACS, and if TRACS receives a full reapproval I will be delighted to move these schools to another chapter in this book. 29 

From Chapter 3:

"....In 1991, the Department of Education recognized the Transnational Association of Christian Schools (TRACS), an evangelical association which accredits Bible colleges and seminaries, but TRACS is not recognized by CORPA at this writing. (Without fanfare, in 1992 TRACS changed its name to the Transnational Association of Christian Colleges and Schools.) TRACS was founded in 1979 to act as an accreditor of private Christian colleges, universities, and seminaries.[2] Unlike the Accrediting Association of Bible Colleges and the Association of Theological Schools, TRACS deals with Christian liberal arts and vocational colleges as well as schools which focus on a biblical curriculum. Their institutional requirements include a belief in "Biblical inerrancy, Biblical authority, the historicity of the first eleven chapters of Genesis including special creation as opposed to evolution, and other doctrines of the gospel."[3]
        Despite the government's approval of TRACS as an accrediting agency, I do not consider TRACS a legitimate accreditor. There are several factors through which I arrive at my rationale:

        For a school to seek accreditation by TRACS does not necessarily indicate that the school is a degree mill; in fact, a few credible schools are seeking or have received TRACS accreditation. Despite the reputation TRACS has among many academic professionals of not being a solid accrediting agency, there are several reasons that a few legitimate schools have decided to affiliated with TRACS. For example:
        In summary, TRACS' limited recognition is somewhat tenuous and their reputation is somewhat controversial. Students are better off enrolling in schools that are accredited by a regional association, the Accrediting Association of Bible Colleges, or the Association of Theological Schools, all of which are fully recognized by both accreditor-approving agencies (the Department of Education and/or CORPA) and by other academic institutions.
        Having reported several negative findings about TRACS, let me say a few positive things before we move on.... TRACS is obviously a sincere effort to bring quality to Christian higher education. I think that they've been sloppy in some of their methodology, but I have no doubt about the legitimacy of their motivation. Second, there are several reputable scholars who are on the board of TRACS and who serve on TRACS accreditation teams, more than can be said about the accreditation mills. The mere existence of TRACS underscores a need for reform in the world of accreditation, as evidenced by recent controversies with some regional accrediting agencies that will be discussed in Chapter 5. Finally, TRACS has responded positively to some of the criticisms in this book (which an accreditation mill wouldn't have done), which also underscores the legitimacy of their motivation.
        (Lest I sound too positive, however, TRACS also threatened to sue me for what I've written about them. They haven't done so, which leads me to believe that their threats were merely a form of pressure to get me to change what I have written in previous editions of this book. Well, I haven't. Suffice to say, the evaluation of any organization should be based on the analysis of available facts and shouldn't take into consideration any external pressures, whether positive or negative.)

A Fourth Edition Postscript on TRACS

        In reviewing the above text on TRACS for this edition, I find no substantive changes in the history and evaluation of TRACS as I have relayed it in these pages. There have, however, been a few developments which bear reporting here.
        In May 1995, the United States Department of Education held hearings on the reapproval of TRACS. Even though they were originally granted a two-year approval in 1991, the hearings were not held until 1995 because of changes in federal laws governing accreditation, a change in presidential administration in Washington, and the appointment of a new National Advisory Committee on Institutional Quality and Integrity at the Department of Education.
        In 1993, as a follow up to Name It & Frame It, I wrote a book titled When the TRACS Stop Short: An Evaluation and Critique of the Transnational Association of Christian Colleges and Schools.[7] Unlike this book, which was written primarily for students and other educational consumers, When the TRACS Stop Short was geared primarily toward the professional education community and addressed only schools that were recognized by TRACS through accreditation, candidacy, or associate status.
        If TRACS was displeased with what I wrote about them in Name It & Frame It, they went ballistic when they heard about When the TRACS Stopped Short and engaged Wendell Bird, a prominent Christian attorney who has written some excellent materials on constitutional issues, to take legal action. TRACS threatened litigation, I had a few laughs, and they never sued. (As for whether my book defamed the accreditor, I felt somewhat vindicated to read in the prestigious Chronicle of Higher Education, "TRACS officials have called [When the TRACS Stop Short] inaccurate, but the Education Department found that the group based some improvements on criticisms raised in the book.")[8]
        At the Department of Education hearings in May 1995, the National Advisory Committee found serious problems with TRACS and voted to give them eighteen months to improve before facing another review by the Department. One problem the Committee found was that TRACS had granted candidacy status to Nashville Bible College, a traditional residential school which at the time had only twelve full-time students, seven part-time students, and two part-time faculty members.
        The Committee did not substantively address the church-state concerns expressed about TRACS here, but did note that the language used to describe TRACS in government publications - indicating that TRACS accredited "Christian institutions which believe in Biblical inerrancy, Biblical authority, the historicity of the first 11 chapters of Genesis including special creation as opposed to evolution, and other doctrines of the Gospel" - could be construed as giving the impression that the Department endorsed a particular set of doctrines. The Committee did recommend the use of more neutral language, but TRACS executive director J. Gordon Henry stated that there was nothing wrong with the description, noting, "TRACS has no identity crisis about who we are."[9]
        As of September 1995, ... J. Gordon Henry has retired as the association's executive director, as has Henry Morris, TRACS' founder and chairman. TRACS has moved from Tennessee (where it had been headquartered on the same grounds as J. Gordon Henry's home) to Forest, Virginia. The association has appointed Earl Mills and Russell Fitzgerald, both of whom served at Liberty University, as associate executive directors.
        In a recent interview, Mills indicated some changes at TRACS which may improve the quality of their performance. However, TRACS policies dictate that action cannot be taken against recognized institutions on an immediate basis, and that questionable institutions must be given time to improve their performance before final action is taken....." 
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***End quote.