Capella University Makes Higher Education Possible for Displaced LTV Mine Workers.

Business Editors & Education Writers

VIRGINIA, Minn.--(BUSINESS WIRE)--May 29, 2001

Promising A Retooling of Workforce Skills, Online University

Makes Good On Senator Wellstone's Challenge To Enhance

Educational Opportunities For Laid-Off Mine Workers

In the wake of the LTV mine closing that put 1,400 people in Hoyt Lakes, Minn. out of work, Sen. Paul Wellstone found himself agreeing with the assessment of an audience of high schools students.

Yes, times were tough. And, no, there wasn't an easy answer.

But with that message came cause for optimism. As the senator addressed an auditorium full of students whose parents were now out of work, he vowed to find a way to help both the laid-off workers and their families position themselves for success in the 21st century economy.

Today, Capella University and Mesabi Range Community and Technical College have taken the first step toward acting on Wellstone's challenge. Capella, an accredited online university, has volunteered to provide $500,000 in grants to the employees and family members of people displaced by the closing of LTV Steel Mining Co. in Hoyt Lakes. The grant program is a central piece of a larger effort to retrain Iron Range workers with skills that will keep them employable in a changing economy.

Through the four-year, Dislocated Worker Grant Program, Capella University will provide up to $10,000 in education grants to workers who were displaced by the closing of steel and taconite plants in the Mesabi Iron Range. Meanwhile, for prospective students who do not have the prerequisites necessary to enroll in Capella University, Mesabi Range Community and Technical College will offer introductory courses.

The grants, along with other state and private funding, will provide enough tuition assistance for each worker laid off at LTV's Aurora-Hoyt Lakes taconite mine to earn a bachelor's or master's degree. In addition, the grants will be available to other people who have been displaced by the mine's closing, including vendors and service industry workers who supported the mine.

"A critical component of attracting good paying jobs to the Iron Range is making sure the people of northern Minnesota have ongoing access to high-quality education and job training," Wellstone said. "This partnership between Capella University and Mesabi Range Community and Technical College is an innovative example of a private company and a public college working together to help a community and its residents prepare for the future."

The program is a response to rural America's growing need for access to information-age technology skills and jobs. By offering this continuing education online, Capella University is making it possible for people to continue their education while continuing their lives on the Iron Range. Capella University is providing the residents of Northeast Minnesota with another set of tools to help them get the training they need to get new jobs.

"When you talk about Iron Range workers, access to higher education is a serious issue," said Stephen Shank, CEO of Capella Education Company. "For many of these workers, the nearest four-year college is hours away. When you factor in work, family and Minnesota winters, commuting three times a week isn't realistic. By bringing higher education to the homes of displaced workers, we are making it possible for people to get the retraining they need, without uprooting their families."

A Two-Step Approach

Improving access to education is just one part of the equation in helping displaced workers return to the workforce. While Capella University will provide training and education, sources such as the Iron Range Resource and Rehabilitation Board will continue their efforts to make high-paying jobs available to Iron Range residents.

"We know this isn't a panacea," Shank said. "There are no magic bullets. But there are a lot of advantages to starting an industry in a rural location like Northern Minnesota. If we can do our part to help develop a skilled, technologically savvy workforce, we believe good, high-paying jobs will follow."

Program Overview

The grants will apply to all Capella University's programs, ranging from its bachelor's degree program in information technology to professional development courses in subjects like education and psychology. In addition to introductory courses, Mesabi Range Community and Technical College will provide on-site academic support services, including access to computers and high-speed Internet connections.

"To make any educational experience successful, whether online or residential, there needs to be a strong support system in place," said Dr. Joe Sertich, president of MnSCU's Northeast Higher Education District. "By taking advantage of the resources available through Mesabi Range Community and Technical College, we are providing a program that will meet the educational needs of the displaced workers."

Here's how the grant program will work:

-- Hourly workers from LTV Steel Mining Company may qualify for up to $1,800
annually in a tuition assistance grant through the USWA Local 4108/LTV Steel
Mining Company Career Development Program.

-- Laid-off workers are required to apply for a $3,500 education grant from the
Northeast Minnesota Office of Job Training, a Minnesota WorkForce Center
partner. This government organization connects Northeast Minnesota residents
with employment and training information and services. The Office of Job
Training will provide funding for all displaced workers who present an approved
education plan and can demonstrate that their education plan will produce a
reasonable opportunity for job placement.

-- After securing this funding, displaced workers will be required to apply for
any state and federal financial aid programs available to them. As a charter
participant in the Department of Education's distance education demonstration
study, Capella University is one of only 15 universities for which students can
receive federal financial aid for online programs.

-- Capella University will provide virtually all remaining funding needed for
tuition.

About Capella University

Capella University (www.capellauniversity.edu) is an accredited fully online university that offers courses, certificates and degree programs in a variety of subjects, including business, education, human services, psychology and technology. Through its online campus, Capella University teaches more than 3,000 students throughout the United States and in 30 countries. Capella University is affiliated with the for-profit Capella Education Company headquartered in Minneapolis. For more information, visit Capella University at www.capellauniversity.edu or call 888.CAPELLA.