“Online programs at private career colleges” lose OSAP eligibility

Files investigated, referred to OPP

Statement by Minister Quinn on pausing OSAP payments to private postsecondary institutions and restoring integrity to the OSAP System

On October 6^th, Ontario’s Minister of Colleges, Universities, Research Excellence and Security issued the following statement:

“In late 2024, the Ministry of Colleges, Universities, Research Excellence and Security (MCURES) began receiving an increasing number of complaints about the growing volume of OSAP applications at private career colleges. On January 15, 2025, Career Colleges Ontario, which operates independently from government and provides financial aid processing services to its members, raised similar concerns about specific institutions.

As part of its regular oversight, the ministry actively reviews complaints and monitors OSAP application activity. As concerns grew and following information provided by the federal government in May 2025 about certain private career colleges, the ministry expanded its review and, in July 2025, launched targeted inspections. In December 2025, the ministry also engaged the government’s Forensic Investigation Team (FIT) to provide advice to further strengthen oversight of the sector.

The ministry continued its work with Career Colleges Ontario to monitor compliance. The ministry also took corrective action and, in May 2026, issued notices of non-renewal to six campuses. The government has since suspended their OSAP eligibility.

Given the volume and nature of the issues identified by the ministry, in August 2026 the government engaged an independent third-party auditor, KPMG, to assess the broader integrity of OSAP applications at private postsecondary institutions. While that work is ongoing, preliminary findings have identified serious concerns about the integrity of the OSAP system in the private postsecondary sector. These include common ownership, the involvement of immigration services firms and co-location between private career colleges and immigration recruitment or immigration services firms, inadequate student validation and verification of course enrolment and outcomes, and unusually high concentrations of OSAP applications submitted from the same geographic locations.

As a result, the government notified the Auditor General last week and has also referred this matter to the Ontario Provincial Police. The ministry is continuing its work to investigate and gather information, with the support of KPMG. The government has also paused all OSAP payments associated with private postsecondary institutions as the audit proceeds.

Going forward, all private postsecondary institutions will have to meet stricter criteria before regaining OSAP eligibility. Further details will be provided at a later date.

Many of the concerns identified to date have been concentrated in online-only programs. As a result, the government intends to introduce legislation to exclude predominantly online programs at private career colleges from OSAP eligibility. This builds on recent changes that removed OSAP grant eligibility for all career colleges.

The government recognizes that many students at private postsecondary institutions rely on financial assistance to complete their studies. To support students during this transition, the Ontario government is working on options to provide low-interest, third-party loans for students enrolled at private postsecondary institutions and is in discussions with financial institutions to facilitate these loans. More information will be made available to students when ready.”