Larry Isaak, Capella president, lasts four months
Just a few weeks ago, Minnesota for-profit university Capella predicted a 35 percent drop in enrollment for the coming quarter. As a result, upwards of 125 non-faculty staff were expected to get pink slipped, and the company's stock took a beating.
Now it looks like company president Larry Isaak is bailing out, too.
Isaak held the post for just four months, but the university said he "made the personal decision to step down and will pursue other opportunities."
Like other for-profit universities, Capella has been under fire for signing students up for federal loans to maximize shareholder value, then producing graduates who can't find jobs and end up defaulting on the loans.
A recent Department of Education study showed that Capella graduates had a 7.5 percent default rate. That's not great, but it's better than Duluth Business University, where more than one in four students has defaulted.
Capella CEO Kevin Gilligan promised his shareholders better value down the road by making some decidedly hard-nosed business calls, including "shifting our marketing mix to more effective channels, continuing to emphasize new product introductions, and investing in Capella's core strength and points of differentiation."
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