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Bachelor's Degrees. In 2006, the United States Department of Education, Office of the Inspector General (OIG) began a compliance audit of Capella. OIG focused 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 found 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, in a response to the audit, says it recognizes some past shortcomings in its accounting practices and has made changes to ensure that such errors are not repeated.
In 2012, Capella received criticism for its expenditures on marketing, profit, and CEO pays rather than instruction, and its use of aggressive recruiting practices. According to a report issued by former U.S. Senator Tom Harkin for the Senate Education Committee, approximately 79% of the institution's cash flow comes from US government Title IV payments, including Pell grants. The report concluded that Capella's recruiting and student services were better managed than most other for-profit competitors, especially among graduate degree students. The high withdrawal rate among Bachelor's student hopefuls, the over-reliance on part-time instructors, and the high relative marketing budget were cited as potential causes for concern. buy Capella University diploma.

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