Capella University Legal Troubles

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Capella University, a well-known online institution, has recently faced a series of lawsuits and settlements that have significantly impacted its reputation and operations. This blog post aims to provide a comprehensive overview of these lawsuits and their implications for Capella University. By examining the legal challenges, settlement details and subsequent impacts of the following lawsuit, we can gain insight into the misconduct policies and potential reforms at Capella University:

  • Time and Cost to Earn Degree
  • Degree Process Bait-and-Switch
  • Student Loan Forgiveness
  • Student Misconduct
  • Misuse of Education Funds

Time and Cost to Earn Degree

One significant lawsuit against Capella University centered around allegations regarding the time and cost required to earn a degree. Plaintiffs claimed that the university engaged in deceptive practices, promising an accelerated degree completion timeline while disregarding the actual time and financial investments necessary.

Settlement Details

The lawsuit ultimately resulted in a settlement between Capella University and the plaintiffs. The settlement included:

  • Substantial monetary amount paid by the university
  • Compensation for affected students who experienced financial hardship
  • Revisions in degree programs and policies to address the alleged misconduct.

Implications and Impact of Settlement

The settlement highlighted the importance of transparency and accuracy in marketing and recruitment practices within the higher education sector. Capella University’s reputation was tarnished, and it was compelled to make changes to ensure a more honest representation of degree completion timelines and associated costs.

Degree Process Bait-and-Switch

Another lawsuit targeted Capella University’s alleged bait-and-switch tactics regarding the degree process. Plaintiffs claimed that the university misled students about the curriculum and course requirements, resulting in significant disruptions and delays in their academic journeys.

Settlement Details

Following legal proceedings, a settlement was reached. Capella University agreed to following:

  • Pay a settlement amount
  • Remedial measures were implemented to address the misleading practices alleged in the lawsuit

Impact on Students and Future Applicants

The lawsuit highlighted the importance of accurate and reliable information for students when choosing an educational institution. Capella University had to address the following concern raised:

Rebuild trust among affected students

Ensure transparency in its degree program descriptions and requirements moving forward

Student Loan Forgiveness

Capella University also faced allegations regarding student loan forgiveness. Plaintiffs claimed that the university misrepresented the eligibility of its programs for federal student loan forgiveness, leading students to accumulate significant debt with limited avenues for relief.

Settlement Details

The lawsuit resulted in a settlement that involved monetary payment by Capella University. Additionally, the settlement brought attention to federal student loan relief programs available to borrowers and the specific forgiveness options applicable to Capella University students.

Impact on Borrowers and Loan Repayment

The settlement shed light on the importance of accurate information and guidance regarding student loans. Capella University had to assist affected borrowers in navigating the loan forgiveness programs and provide resources for managing and reducing their student debt burden.

Student Misconduct

Capella University faced legal challenges related to student misconduct. Plaintiffs alleged that the university failed to adequately respond to instances of student misconduct, leading to concerns about campus safety and the well-being of students.

Institutional Response and Disciplinary Measures

The lawsuit prompted Capella University to re-evaluate and strengthen its student conduct policies. The institution implemented measures to enhance student safety, address instances of misconduct more effectively and ensure a supportive and secure learning environment.

Implications for Student Conduct Policies

The lawsuit emphasized the importance of robust student conduct policies and prompt action against misconduct. Capella University had to implement measures to improve its response to such incidents and promote a culture of respect and accountability within its student community.

Misuse of Education Funds

Capella University faced allegations of misusing education funds, including financial aid and tuition payments. Plaintiffs claimed that the university mishandled these funds, leading to financial implications for both students and the institution.

Investigation Findings

An investigation into the allegations revealed instances of financial misconduct at Capella University, raising concerns about financial management practices and accountability.

Financial Implications and Repercussions

The lawsuit highlighted the need for proper financial oversight and responsible management of education funds. Capella University had to address the financial implications resulting from the alleged misconduct and implement measures to ensure transparency and accountability moving forward.


The lawsuits and settlements discussed above have had a profound impact on Capella University, forcing the institution to confront and address various misconduct allegations. Through these legal challenges, Capella University has learned valuable lessons about transparency, accuracy and accountability in its operations. These experiences can serve as a catalyst for potential reforms and improvements in its misconduct policies, ultimately benefiting both current and future students.

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