If you’re a student at a private career college in Ontario and you rely on OSAP, read this one carefully.
On Tuesday, the province paused all OSAP payments connected to private postsecondary institutions. The pause will stay in place while an independent audit of those schools continues.
The announcement came in a statement from Minister of Colleges, Universities, Research Excellence and Security Nolan Quinn. Quinn is also the MPP for Stormont–Dundas–South Glengarry.
How we got here
According to the ministry, complaints started arriving in late 2024. They were about the growing number of OSAP applications at private career colleges.
On January 15, 2025, Career Colleges Ontario raised similar concerns about specific institutions. Career Colleges Ontario operates independently from government and processes financial aid for its members.
Here’s the timeline the ministry laid out:
- May 2025: The federal government shared information about certain private career colleges. The ministry expanded its review.
- July 2025: Targeted inspections began.
- December 2025: The ministry brought in the government’s Forensic Investigation Team for advice on strengthening oversight.
- May 2026: Notices of non-renewal went to six campuses. Their OSAP eligibility has since been suspended.
- August 2026: The government hired KPMG to assess the broader integrity of OSAP applications at private postsecondary institutions.
What the audit has found so far
KPMG’s work isn’t finished. But the government says the preliminary findings raised serious concerns about the integrity of OSAP in the private sector.
The concerns the province listed are:
- common ownership
- the involvement of immigration services firms
- inadequate student validation, and inadequate verification of course enrolment and outcomes
- unusually high concentrations of OSAP applications coming from the same geographic locations
The government says it notified the Auditor General last week and referred the matter to the Ontario Provincial Police.
The statement does not name any institution. It does not name the six campuses either. No charges have been announced.
What changes
Private postsecondary institutions will have to meet stricter criteria before getting OSAP eligibility back. The province says details will come later.
The ministry says many of the problems were concentrated in online-only programs. So the government plans to introduce legislation that would exclude predominantly online programs at private career colleges from OSAP eligibility.
This follows earlier changes that removed OSAP grant eligibility for all career colleges.
What about the students?
This is the part that matters most to a lot of families.
The province acknowledges that many students at private schools depend on financial aid to finish their programs. It says it’s working on options for low-interest loans from third parties, and it is talking with financial institutions to make that happen.
No timeline. No rates. No details yet. The ministry says it will share information with students when it’s ready.
If you’re affected, keep an eye on your OSAP account and on communications from your school. We’ll update this story as more information comes out.
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