Ontario outlines tighter OSAP rules after widespread irregularities found at private colleges

TORONTO — The Ontario government has released details of proposed measures to reform the Ontario Student Assistance Program (OSAP), after finding widespread irregularities and signs of misuse of public money at a number of private educational institutions.

The move comes as OSAP payments to private colleges remain suspended, after preliminary audit findings raised serious concerns about the integrity of funding applications and the verification of student enrolment.

The government said the measures are aimed at protecting taxpayers' money, while concern grows for thousands of students who rely on the assistance to continue their studies.

New rules for OSAP assistance

The Ontario government intends to impose stricter conditions on private educational institutions before their students are allowed to benefit from the program again.

The proposed changes include a cap on the number of students whose studies can be funded through the program, along with stronger measures to verify applicants' identities.

The government also plans to make programs that are primarily delivered online ineligible for funding.

The measures are meant to ensure that recipients are actually enrolled in accredited programs and that the money is used for its intended educational purposes.

Authorities have not announced a final date for resuming funding, as the decision depends on completing the audit and adopting a stricter oversight system.

Investigation reveals widespread irregularities at private colleges

The concerns began after the Ministry of Colleges and Universities noticed an unusual increase in financial aid applications submitted through some private institutions.

Preliminary investigations found weak procedures for verifying student enrolment and numerous applications originating from specific geographic areas.

Questions also emerged about shared ownership among some educational institutions and links to companies specializing in immigration services and student recruitment.

Court documents indicated that more than 500 funding applications at two career colleges were submitted using a single internet address.

The government has referred information related to suspected criminal activity to the Ontario Provincial Police. This does not mean fraud has been established at all the institutions covered by the audit.

Nearly $1 billion in funding raises questions

Data obtained by Canadian media outlets showed that provincial grants for students at private career colleges came close to $1 billion during the 2024-2025 academic year.

The figure represents a large increase over the previous year, with a significant share of the funding concentrated in a small number of institutions.

The data showed that seven institutions received aid linked to their students totalling about $385 million, roughly equal to the total grants for students at the province's public colleges over the same period.

The figures drew criticism over the effectiveness of government oversight, particularly after it emerged that bodies representing career colleges had alerted authorities to worrying signs years earlier.

Thousands of students face financial difficulty

The suspension of OSAP funding has created uncertainty for students at private colleges, including those who enrolled in their programs before the decision was made.

Some are struggling to pay tuition and complete their programs, while others fear having to postpone graduation.

The government is looking at the possibility of providing low-interest loans through outside financial institutions to help affected students during the transition period.

However, the details of this mechanism and the conditions for obtaining the loans have not been finalized.

Student associations say that tackling abuse is necessary, but they are calling for students who followed the rules not to be held responsible for suspected violations.

Grant cuts add pressure on students

The private college crisis coincides with broader changes to OSAP that took effect for programs starting in August 2026.

Under the changes, a larger share of provincial assistance is now provided as loans that must be repaid, rather than as non-repayable grants.

Students at private career colleges have also lost eligibility for provincial grants, and the provincial funding available to them is now loan-based.

The measures have prompted student protests and criticism from opposition parties, which say they increase the financial burden on young people and low-income families.

The government of Doug Ford, for its part, maintains that the reforms are necessary to ensure the program's sustainability and prevent its abuse.

The future of assistance at private colleges depends on the results of the investigations and the adoption of the new rules, amid calls to restore funding for institutions and students who meet the requirements.