I never believed the "see yourself for who you are and do something with it" line either.
Charles Edwin Dederich University makes a lot more sense to me, especially since it's a known fact that Cedu's founder Mel Wasserman associated with those Synanon Freaks.
Regardless of what the acronym "CEDU" was meant to stand for, here's a far more appropriate meaning:
Crap Education Don't Use