Capella University is Under Investigation by the United States Department of Education, Inspector General's Office!

We have just learned that, according to Capella University's latest submission (October 27, 2006) to the Security and Exchange Commission (SEC) that they are under yet another investigation by a Federal law enforcement agency; this time, they are being subjected to an audit by the United States Department of Education, Inspector General's Office. Interestingly, this is the same law enforcement agency that nailed another for-profit online school - the esteemed University of Phoenix! In that case, "UOP applied inappropriate methodologies" that "may have understated the amount of Title IV funds to be returned by over 10 million dollars!"

In their latest SEC filing, Capella University notes:

Risks Affecting Us

"Our business is subject to numerous risks as discussed more fully in the section entitled “Risk Factors” immediately following this Prospectus Summary. In particular, our business would be adversely affected if . . .

. . .we [Capella University] experience damage to our reputation or other adverse effects in connection with the compliance audit of Capella University currently being conducted by the Office of Inspector General of the U.S. Department of Education [!]"

Site visitors will be delighted to learn that the Inspector General's Office (OIG) is another law enforcement arm of the United States Department of Education that "conducts audits, investigations, and inspections of education programs and operations. Anyone knowing of fraud, waste, or abuse of Department of Education funds should contact the OIG Fraud Hotline to make a confidential report."

While we currently do not have any details regarding this potentially significant investigation, we urge all concerned citizens who may be aware of any "fraud, waste, or abuse of Department of Education funds" by Capella University and/or their officials to report it immediately to the OIG's fraud hotline!

Capella University "Voluntarily" Withdraws Application for APA Accreditation!

In a victory for all American citizens, Capella University has just "voluntarily withdrawn" their application for accreditation from the American Psychological Association (APA)! While the real reasons for this great news is unknown (and we doubt Capella University will bombard the Internet with one of their insipid press releases regarding this matter), we can only guess that the APA found that Capella University is little more than a diploma mill that's concerned only with bilking more money out of their victims and asked them to "voluntarily withdraw" their application rather than face the embarrassment of having it denied outright by the APA. Again, that's just speculation but, in light of the fact that Capella University has been trying unsuccessfully for YEARS to gain APA accreditation, it wouldn't surprise us. It's also important to note the revolving door of personnel that's taken place over the years within Capella's so-called "School of Psychology" - with this latest news, we suspect that more heads will be on the chopping block!

In light of Capella's history of abusing students, we can't help but wonder what kind of backlash might follow now - especially from students who may have been deceived by Capella University. Time will tell!