Capella University
MottoPetere Sapientiam
Motto in English
Ask for Wisdom
TypePrivate for-profit, online university
Established1993
PresidentConstance St. Germain
Administrative staff
1,358[1]
Students41,401[1]
Address
Capella Tower
,
Minneapolis
,
Minnesota
,
United States
CampusOnline
ColorsRed and black
  
Websitewww.capella.edu

Capella University is a private for-profit, online university headquartered in Minneapolis, Minnesota. The school is owned by the publicly traded Strategic Education, Inc. and delivers most of its education online.

Capella has 47 degree programs with over 1,600 online courses. Approximately 41,401 students are enrolled from all 50 states and 51 other countries, with 18 percent enrolled in doctoral programs, 45 percent enrolled in master's programs, and 35 percent enrolled in bachelor's programs.[2]

History

Capella University was originally established as The Graduate School of America by Dr. Harold Abel and Stephen Shank in 1993. Shank was the former CEO of Tonka. Abel, formerly the president of Castleton State College, Central Michigan University, and Walden University,[3][4] became the first president of the institution.[5]

In 1997, Capella University received regional accreditation.[6] Two years later the parent company and university were renamed Capella Education Company and Capella University, respectively. In 2000, Capella began to offer bachelor's degree programs.

In 2005, Capella Education Company announced its intention to go public with an initial public offering. In 2006, they became a publicly traded company (NASDAQ: CPLA), raising $80 million with the offering.[7]

In 2007, Capella was named one of 86 higher education institutions in the United States to have received the National Centers of Academic Excellence in Information Assurance Education (CAE/IAE) designation by the National Security Agency (NSA). The designation was valid for the academic years 2007 through 2012.[5][8]

In March 2008, Capella Education Company, longtime occupant of the 225 South Sixth skyscraper in downtown Minneapolis, signed a new lease that expanded its office and renamed the building Capella Tower. The building houses all of the company's 1,150 downtown Minneapolis administrative staff.[9]

In 2009, The Project Management Institute (PMI) Global Accreditation Center for Project Management (GAC) accredited two Capella University online degree programs: the MS in Information Technology with a specialization in Project Management; and the BS in Information Technology with a specialization in Project Management.[10] It also launched its School of Public Service Leadership.[11]

In 2010, Capella, along with three other schools, was awarded the CHEA Award for Outstanding Institutional Practice in Student Learning Outcomes by The Council for Higher Education Accreditation.[12]

In August 2018, Capella University's parent company Capella Education merged with Strayer Education Inc. to form Strategic Education, Inc.[13]

In 2019, Capella added learning sites in Atlanta, Georgia and Orlando, Florida.[14]

Capella began a partnership with Optum in August 2023 to launch an educational program for nursing.[15] In September 2023, Constance St. Germain was appointed as President of Capella University.[16]

Academics

Academic rankings
National
Washington Monthly[17]441 of 442

According to College Navigator, Capella's faculty comprises 207 full-time instructors and 1,321 part-time instructors.[18]

Undergraduate applicants who do not have any credits eligible for transfer must complete a university-approved examination to be considered for admission.[19]

Capella's enrollment is composed mainly of graduate students, including 45 percent MS/MBA students and 18 percent PhD/PsyD doctoral students. The undergraduate population of Capella makes up 35 percent of the student body.[2] Less than one percent are working on certificate programs. The average age of a Capella student is 37. Ninety-five percent of students are enrolled part-time, 86 percent are female, and 53 percent are ethnic minorities.[1]

Capella allows a limited number of credits to be earned through a prior learning assessment program, which can provide college credit for past experiences.[20][21]

Accreditation

Capella University is accredited by the Higher Learning Commission.[22][23] Baccalaureate and graduate level teacher education programs are accredited by the National Council for Accreditation of Teacher Education.[24] The graduate level counseling program is accredited by The Council for Accreditation of Counseling and Related Educational Programs (CACREP).[25] Baccalaureate and graduate level nursing programs are accredited by the Commission on Collegiate Nursing Education.[26] Baccalaureate and graduate level business programs have been accredited by the Accreditation Council for Business Schools and Programs since 2014.[27] Baccalaureate level information technology programs have been accredited by the Accreditation Board for Engineering and Technology, Inc (ABET).[28]

Controversies

U.S. Department of Education compliance audit

In 2006, the United States Department of Education, Office of the Inspector General (OIG) began a compliance audit of Capella. OIG focused on the university's policies and procedures concerning the return of Title IV funds as required by Federal Law for students who failed to give official notice that they were withdrawing from the school.[29] The OIG found that Capella made accounting mistakes in how it calculated student eligibility for government-subsidized loans, including failing to return all funds disbursed on behalf of students who dropped out before their first day of class.[30] Capella, in a response to the audit, says it recognizes some past shortcomings in its accounting practices and has made changes to ensure that such errors are not repeated.[30]

Criticism of marketing expenses and executive compensation

In 2012, Capella received criticism for its expenditures on marketing, profit, and CEO pay rather than instruction, and its use of aggressive recruiting practices. According to a report issued by former U.S. Senator Tom Harkin for the Senate Education Committee, approximately 79% of the institution's cash flow comes from US government Title IV payments, including Pell grants. The report concluded that Capella's recruiting and student services were better managed than most other for-profit competitors, especially among graduate degree students. The high withdrawal rate among Bachelor's student hopefuls, the over-reliance on part-time instructors, and the high relative marketing budget were cited as potential causes for concern.[31]

Class-action lawsuit

In 2018, a lawsuit was filed against Capella in the U.S. District Court for the District of Minnesota alleging that the school "violated doctoral students' rights by creating a process intended to ensure that it would be difficult, if not impossible, for students to timely complete, or complete at all, their doctoral programs."[32] The school rejected the lawsuit's claims, stating that the court had thrown out the majority of the legal claims.[33] In 2022, the class action was resolved through private mediation with terms not disclosed.[34]

Alleged fraud regarding student loans

Capella University was one of 153 institutions in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement was approved in August 2022, stating that the schools on the list included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven."[35][36] In April 2023, the Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud.[37]

Notable alumni

References

  1. 1 2 3 "Media Fact Sheet" (PDF). Capella University. 2014. Retrieved 2014-04-14.
  2. 1 2 "FactSheet" (PDF).
  3. ↑ "Harold Abel New CMU President". The Argus-Press. June 16, 1975. Retrieved 2013-06-22.
  4. ↑ "Capella University Co-Founder Dr. Harold Abel Dies at Age 75". Capella University. 2002. Archived from the original on 2007-10-05. Retrieved 2013-06-22.
  5. 1 2 "The History of Capella University". Capella University. 2013. Archived from the original on 2012-10-06. Retrieved 2013-06-22.
  6. ↑ "Higher Learning Commission". www.hlcommission.org. Retrieved 2021-06-22.
  7. ↑ Reilly, Mark (Nov 9, 2006). "Capella jumps after $80M IPO". Minneapolis/St. Paul Business Journal. Archived from the original on 2010-07-30.
  8. ↑ "NSA Press Release, June 28, 2007". Archived from the original on March 25, 2013. Retrieved September 11, 2009.
  9. ↑ Sam Black, Capella lease to rename 225 South Sixth, Minneapolis / St. Paul Business Journal, March 20, 2008.
  10. ↑ "Project Management Institute (PMI) Global Accreditation Center for Project Management (GAC) accredits two Capella University online degree programs". Capella University. 2009. Archived from the original on 2012-04-01. Retrieved 2013-06-22.
  11. ↑ "Capella University Enters New Public Service Leadership Market; Launches Five New Public Service Educational Offerings". Capella University. 2009. Archived from the original on 2012-04-01. Retrieved 2013-06-22.
  12. ↑ "Four Colleges and Universities to Receive 2010 CHEA Award". Council for Higher Education Accreditation. 2010-01-08. Archived from the original on 2011-07-25. Retrieved 2010-07-26.
  13. ↑ "Strayer and Capella Merger Finalized". Retrieved 4 October 2018.
  14. ↑ Busta, Hallie. "Parent company of Strayer and Capella U eyes expansion". www.educationdive.com. Education Dive. Retrieved 2 August 2019.
  15. ↑ Lagasse, Jeff (9 August 2023). "Optum teams with Capella University on nurse practitioner educational program". Healthcare Finance.
  16. ↑ "Capella University Names Constance St. Germain as New President". Market Screener. 28 September 2023.
  17. ↑ "2022 National University Rankings". Washington Monthly. Retrieved September 13, 2022.
  18. ↑ "Capella University". College Navigator. US Department of Education. Retrieved 2 August 2019.
  19. ↑ "Capella University Admission Requirements" (PDF).
  20. ↑ "College Navigator - Capella University". Nces.ed.gov. Retrieved 2010-07-26.
  21. ↑ "Capella University - Earn credit for prior learning and transfer credits". Retrieved 2010-08-24.
  22. ↑ "Council For Higher Education website". Archived from the original on 2007-09-28. Retrieved 2007-09-06.
  23. ↑ The Higher Learning Commission website
  24. ↑ "USDE Accreditation Database". U.S. Department of Education. Archived from the original on 2014-05-21. Retrieved 2012-11-12.
  25. ↑ "Directory (Minnesota)". CACREP. Retrieved 18 March 2016.
  26. ↑ "USDE Accreditation Database". United States Department of Education Accreditation Database. Archived from the original on 2014-05-21. Retrieved 2012-11-12.
  27. ↑ "ACBSP Accreditation Database". Accreditation Council for Business Schools and Programs. Retrieved 2015-05-21.
  28. ↑ "Find Programs | ABET".
  29. ↑ "Capella University's Compliance with Selected Provisions of the Higher Education Act of 1965 and Corresponding Regulations: Final Audit Report" (PDF).
  30. 1 2 "Capella University Overcharged Student Lenders $588,000, Audit Finds". Retrieved 2008-03-14.
  31. ↑ http://www.help.senate.gov/imo/media/for_profit_report/PartII/Capella.pdf
  32. ↑ "The Capella Lawsuit | Capella University Class Action Lawyers". Capella University Doctoral Students. Retrieved 2021-06-22.
  33. ↑ "'They stole my time': For-profit college students share horror stories". www.yahoo.com. 15 May 2020. Retrieved 2021-06-22.
  34. ↑ Verges, Josh (April 28, 2022). "Capella University settles lawsuit over time, cost to earn degree". Archived from the original on April 25, 2023. Retrieved October 26, 2023.
  35. ↑ "Government's Consolidated Opposition to Motions to Intervene" (PDF). Retrieved 2023-04-15.
  36. ↑ Turner, Cory; Carrillo, Sequoia; Salhotra, Pooja (2022-08-05). "200k student borrowers are closer to getting their loans erased after judge's ruling". National Public Radio. Retrieved 2023-04-15.
  37. ↑ Hurley, Lawrence (2023-04-13). "Supreme Court allows $6 billion student loan debt settlement". NBC News. Retrieved 2023-04-15.
  38. ↑ NJ.com, Ted Sherman | NJ Advance Media for (2020-12-14). "Killer involved in 1992 kidnapping and murder of Exxon executive denied compassionate release". nj. Retrieved 2021-06-22.

44°58′35″N 93°16′07″W / 44.976275°N 93.268583°W / 44.976275; -93.268583

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