I understand some schools putting caps on what you are allowed to test out of. But to say none at all. That is utter bull shit. The school where I am taking my A.S atm does not accept clep/dsst. However they do provide their own test out option. You just take one of the instructors final exams. However you are not allowed to test out of core classes.

If they are afraid of profits then just put a cap on it. saying you cannot test out of more than x classes for an AS / AA and more than y classes for a BS/BA.