Fact: Capella University has been found in violation of Federal Laws

Capella University continues to be found in violation of Federal laws. These violations of law are easily verified by government documents and articles printed by the National news media. All of the violations of law listed below may be confirmed by clicking on the links provided.

Known Violations of Federal Laws by Capella University

• March 2008 - The United States Department of the Education, Office of the Inspector General issued a final audit report of Capella University which determined, in part, that,
  • "The University did not return all funds disbursed on behalf of students who dropped before the first day of class of the payment period. The University used the midpoint of the academic quarter (payment period) as the withdrawal date for all students who unofficially withdrew, even when the University lacked documentation of the student’s attendance during the payment period. As a result, for the 2002-2003 through 2004-2005 award years, the University returned to the Title IV, HEA programs about $588,000 less than it should have returned."
  • "The University disbursed Title IV, HEA program funds (FFEL and Pell) to students who were not enrolled in an eligible program at the time of the disbursement."
  • "The University could not provide support to show it conducted exit counseling for 2 of the 25 students in our sample who had ceased at least half-time study at the University. In addition, the University performed exit counseling 11 to 18 months after 3 other students stopped attending."
  • "for the 2002-2003 through 2004-2005 award years, the University did not comply with the provisions of the law and regulations governing the return of Title IV, HEA program funds and FFEL and Pell disbursements."
  • "The University did not return all Title IV, HEA program funds disbursed on behalf of students who dropped before their first day of class for the payment period (Finding No. 1)"
  • "disbursed Title IV, HEA program funds to students who were not enrolled in an eligible program at the time the disbursement was made (Finding No. 2)"
  • "did not document that it performed exit counseling for all students receiving FFEL Program funds during the 2004-2005 award year (Finding No. 3); and disbursed Title IV, HEA program funds to a student who was enrolled in an ineligible program (Finding No. 4)."

  The above facts may be confirmed by viewing the actual report issued by the United States Department of Education, Office of the Inspector General, located on the USDE's web site.

• September 29, 2007 - The United States Department of Education, Family Policy Compliance Office (FPCO) which is the Federal Law Enforcement Agencies encharged with enforce the Family Educational Rights and Privacy Act (FERPA) found Capella University in violations, on ten counts, of that Act. Part of letter to Capella's President, Michael Offerman states,

  [The records demanded from Capella University] “have yet to be provided to him. There is no explanation as to why such records were denied the Student by the University or a reason under FERPA when it did not provide the records outlined below to the Student within 45 days of his July 10 [2004] request. . .]

  The above facts may be confirmed by viewing the letter of findings by the FPCO that contain the parts relevant to the intentional violations of Federal Law by Capella University.