Jim Lane was a main free-state leader, and Lecompton was previously the capital of the opposing pro-slavery faction.

Local tradition notes that a funding drive to construct the university promised to name it after the major contributor.

Allegedly, James H. Lane made the largest pledge, received the namesake honor, and then died of a self-inflicted gunshot wound before he could carry out his promise.

In 1865 the state donated to the university 13 acres of land that included the foundation of what had been intended to be the Kansas Territorial Capitol building at Lecompton.

The Church of the United Brethren in Christ owned and controlled the school during its entire history.