I think Grove City College and Hillsdale College are close to what the OP is talking about.
I understand that their economics departments are pretty sound, what about history or other liberal arts that are usually tainted by socialism?
When I say "degree" I mean degree from an accredited school.
I could print out a "degree" right now and grant it to myself, but if no schools, professional associations, etc, recognize it...?
As I said, the idea is to attract quality students, who would not otherwise be inclined to attend a libertarian school, by the offer of a degree (widely recognized, accredited, such as they would need to become doctors or lawyers or academics, etc), at no cost.
Not being accredited doesn't always mean that a school's degrees are not recognized.
I believe that Harvard is not accredited. Accreditations agencies need Harvard more than Harvard needs them.
That's definitely not the case, unless we're talking about some kind of legal technicality.
Hmm. Looks like you're right. I apparently got taken in by an urban myth some time ago.

I think we already have one. Hillsdale College accepts no federal money at all and has a long history of teaching liberty principles. The Christophobes would have a problem with some of their curriculum, but there you go.
Is Hugh Hewitt one of the faculty? I see him on the front page.