How a Minneapolis-based online university became a hub for global leaders and complex scrutiny

Countries & Cities · Published 15 October 2026 Swipe more like this →

In short: Founded in 1993, Capella University transformed from a niche graduate school into a massive, publicly traded online institution. While it serves thousands of adult learners and counts international politicians among its alumni, the university has navigated significant regulatory challenges, legal battles, and debates over its for-profit business model.

Established as The Graduate School of America by Harold Abel and Stephen Shank in 1993, the institution was designed to cater to working adults. It achieved regional accreditation in 1997 and later expanded into bachelor's degree programs in 2000. By 2006, the parent company went public on the NASDAQ, raising $80 million. In 2018, the parent company merged with Strayer Education to form Strategic Education, Inc., a move that solidified its position in the for-profit education sector.

The university's student body is distinctively older and more part-time than traditional campus-based schools, with an average student age of 37. Enrollment is heavily weighted toward graduate studies, comprising 45 percent MS/MBA students and 18 percent doctoral candidates. Its reach is global, with notable alumni including Debretsion Gebremichael, the former president of the Tigray Region in Ethiopia, and Irene Muloni, a former Minister for Energy and Minerals in Uganda.

Despite its academic growth, Capella has faced significant institutional friction. A 2006 Department of Education audit identified accounting errors regarding student loan disbursements, while a 2012 Senate report criticized its high marketing expenditures and reliance on federal Title IV funding. More recently, the university was included in a 2022 class-action settlement involving over 200,000 borrowers, which addressed allegations of substantial misconduct and resulted in widespread student debt cancellation.

Today, the university maintains various specialized accreditations, including those from the Higher Learning Commission and the American Psychological Association. It continues to operate as a major player in online education, balancing its role as a credentialing body for professionals with the ongoing scrutiny that often accompanies the for-profit higher education model in the United States.

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