Capella University review: Corrupt, scam "school" 4

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Capella University Facts

Many former students of CAPELLA are plagued with high debt to income ratios after taking out student loans from this for-profit university. CAPELLA was even recently questioned by the U.S. Government Accountability Office (GAO) for the “school” having such a [questionable and suspicious] high withdrawal rate amongst its students, and for CAPELLA spending an unusually high percentage of its revenue on [aggressive] marketing.

The State of Minnesota Department of Higher Education even stated, about CAPELLA, after the agency having received many complaints from CAPELLA students that, "students arguments have merit", and stated, "CAPELLA is not an ethical university, because all they want is money”.

In March 2008, CAPELLA was the subject of an Education Department audit that revealed CAPELLA of having overcharged lenders by over a $1.5M, and even that a [terminated] CAPELLA Financial Aid Director (TIM LEHMANN) received “kickbacks” from [multiple] lenders! The Inspector General’s audit also revealed mistakes in calculation of student eligibility for federal loans, as well as failure to return funds granted on behalf of students who withdrew from their courses. Also, CAPELLA admits that its staff accepted travel, lodging, meals and other perks from student loan lenders.

CAPELLA’s website and “advisers” stated, “students don't mind a non-APA degree”, and also stated, “graduates earn more income upon their graduating from its university” - which was false and deceptive! CAPELLA’s PhD/PsyD (psychology doctoral programs) do not even qualify its graduates to even “practice” clinical psychology, as its psychology doctoral programs are not recognized by the APA in many states - - a requirement of course necessary for any graduate to become eligible for state board-certification or ability to practice psychology - - the same issue as Argosy University faced (a lawsuit Argosy University “lost”!). CAPELLA’s website and “advisers” even stated, “students don't mind a non-APA degree” - which was also false and deceptive!

Argosy University, also a for-profit “school”, was even known for its “bait and switch” and deceptive (“business”) practices as was CAPELLA, whereas all of Argosy’s psychology students were transferred from its PhD program, to its PsyD program, being aware that the “school” was not recognized by the American Psychology Association (APA), and Argosy University even canceled its pursuit to become accredited for its Psychology Doctoral Programs – with its students [actively] enrolled in its programs. Argosy University’s students successfully sued for such “our” goal is to achieve the same justice against CAPELLA!

Also, many CAPELLA students were provided “false information” / “false promises” from CAPELLA “enrollment counselors” (aka “sales representatives”), stated to enrollees that upon their graduating, CAPELLA graduates will be qualified to ‘practice’ psychology within any state, and enrollees were provided “false, misleading information” / “false promises”, in addition to other false / misleading statements by CAPELLA, to its students, stating its graduates would earn a higher income upon completing its program - - regardless of the type of program / degree.

Interestingly, the State of Minnesota passed a State Bill (S.B.) regarding requirements of higher education universities having to comply with annual “reporting” (known as the “Harkin’s Report”), which states statistics / facts about for-profit universities (corporations!). Within this “report” (pages 318-319 - CAPELLA), it’s stated that, “Student complaints indicate dissatisfaction with the instructional quality at CAPELLA”. Also, in a letter to the President of CAPELLA, from HLC, the company’s accreditor, he expressed, “concern regarding CAPELLA’s academic quality”; also stating, “…Students’ letters are troubling in light of other recent complaints.” HLC also indicated that these [many] complaints suggest [many] CAPELLA students’ dissatisfaction with the quality of the interaction and education experienced with CAPELLA’s core academic programs, in addition to CAPELLA’s unwillingness to review and respond to “customer service” issues/complaints from its students.

The Harkin’s Report also states that, “more than 1 in 5 students who attended a for-profit universities (22%) defaulted on their student loans, according to the most recent data; in contrast to the 1 in 11 student enrolled at public / not-for-profit universities, “defaulting within the same period as for-profit universities. Also cited, is that, “students who attended for-profit universities default at nearly three times the rate as opposed to students who attended not-for-profit / public universities”.

CAPELLA provided to the Harkin’s Report, that out of its 5, 602 Bachelor’s students who were enrolled at CAPELLA in [protected] alone, 60.3% (or 3, 378 students) withdrew from its programs by mid-2010. It’s uncertain what CAPELLA’s current statistics are, with its undergraduate and graduate degree programs. However, CAPELLA’s Bachelor degree enrollees had a withdrawal rate of 60.3% during this period, exceeded the sector-wide rate of 54.3%, revealing that CAPELLA had the 6th highest withdrawal rate for Bachelor’s degree programs of any for-profit “school” (company) examined by the senate committee. Also, Capella’s graduate degree students’ enrolled during [protected], had withdrawal rates that averaged at/greater 43.6% (7, 369 students) who were enrolled in its graduate degree programs, with its enrollees having withdrawn, without having earned their degrees, by mid-2010.

Capella Sanctioned by the U.S. Government

The GAO investigation is just the largest among many studies and lawsuits against colleges with deceptive sales tactics. Countless for-¬profit universities have come under fire from state attorneys general and other authorities.

A 2016 GAO report found that CAPELLA had a high withdrawal rate among students in its degree programs. The GAO also found that CAPELLA spent / spends an unusually high percentage of its revenue on [aggressive] marketing and recruitment strategies and “enrollment counselors - - who are really “sales people” that have sales quotas/goals or are terminated, with CAPELLA spending a relatively small amount on its faculty and online instruction. Additionally, most of its instructors are part-time and lack accreditation - all inevitably to be an “issue” in the near future.

Capella University Student Investigation & Lawsuit

An investigation on behalf of former and current students of CAPELLA (NASDAQ:CPLA) and its Capella University, was announced in connection with the report by the Government Accountability Office with the title"For-Profit Colleges: Undercover Testing Finds Colleges Encouraged Fraud in Deceptive and Questionable Marketing Practices."

CAPELLA is facing an investor lawsuit filed on behalf of those who purchased CAPELLA common stock during February 16, 2010 - August 13, 2010 over alleged violations of Federal Securities Laws.

REQUEST a “LITIGATION INFORMATION FORM”, then send your completed form to:

Roberta Yard, Esq.
Reinhardt, Wendorf & Blanchfield
Attorneys at Law
East 1250 First National Bank Bldg.
332 Minnesota St.
St. Paul, MN 55101
TEL: [protected]
FAX: [protected]
EMAIL: r. [protected]@rwblawfirm.com

REQUEST a “COMPLAINT FORM”, then send your completed form to:

Minnesota Office of Higher Education
Curriculum & Student Consumer Research Analyst;
Institutional Licensing & Registration
1450 Energy Park Dr., Suite 350
St. Paul, MN 55108
TEL: [protected]
www.ohe.state.mn.us

FILE your “COMPLAINT” (Under “Consumer Complaints” Section) to the Office of the Attorney General – State of Minnesota at:
www.ag.state.mn.us/

FILE your “COMPLAINT” with the Department of Justice at:
www.justice.gov/crt/how-file-complaint

FILE your “COMPLAINT” with the Federal Trade Commission at:
www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc

FILE your “COMPLAINT” with the Consumer Financial Protection Bureau at:
www.consumerfinance.gov/

FILE your “COMPLAINT” with the U.S. Government Accountability Office at:
www.gao.gov