Capella University - Controversy

Controversy

In 2006, a compliance audit was commenced by the United States Department of Education, Office of the Inspector General (OIG) focusing 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. The OIG contends 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. Capella University, in a response to the audit, says it recognizes some past shortcomings in its accounting practices and made changes to ensure that such errors are not repeated.

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