Losing the accreditation would KILL UNC, making it off-limits for all federal aid or pretty much any federal money.
It's not going to happen. What's tough is the accrediting guidelines say there needs to be rigorous curricula but also puts a lot on independence of faculty. Auburn had a problem with their accreditation at the same time as the NY Times story on Auburn paper classes. But the paper classes were by a faculty member and SACS did not do anything, as far as I can tell. The action by SACS dealt with Lowder's attempted coup, usurping the authority of the president and AD.
Independent faculty has limits. The accreditation guidelines say courses have to be rigorous and students ultimately fulfill necessary competencies. But it also states independence of how faculty members teach their classes. The academic administrators used that independence to not ask too many questions of the AFAM teacher. In reality, they were afraid of an awkward conversation. SACS ultimately came down on UNC because the courses were not taught by a faculty member.