Full Breakdown
Ontario Pauses OSAP Funding for Private Career Colleges Amid Audit and Police Referral
By Drooid · · How we work
Core Event
On Tuesday, March 24 2026, Ontario’s Minister of Colleges and Universities Nolan Quinn announced that the province has paused all Ontario Student Assistance Program (OSAP) payments for students enrolled in private career colleges. The pause follows a KPMG-led audit that uncovered “serious concerns” about the integrity of OSAP use in the private post-secondary sector. The government has also referred the matter to the Ontario Provincial Police and notified the auditor general.
Background & Context
Targeted inspections of private career colleges began in 2025 after growing worries about OSAP misuse. In August 2025 the province engaged KPMG to conduct a sector-wide audit. Preliminary findings highlighted:
- Common ownership between colleges and immigration-services firms.
- Co-location of colleges with immigration recruitment agencies.
- Inadequate validation of student enrolment and outcomes.
- Unusually high concentrations of OSAP applications from specific geographic areas.
Career Colleges Ontario, the industry association that processes OSAP applications for its members, has warned the province of “suspicious” OSAP activity since January 2023.
Data & Statistics
- $385 million in OSAP grants were paid to students at seven private career colleges in the 2024-25 academic year—an amount equal to the total granted to all publicly funded colleges in Ontario (Canadian Press).
- Mothercraft, a long-standing early-childhood education provider, graduates about 125 new early-childhood educators each year, a figure critical to the national affordable child-care program.
- The sector-wide pause has left hundreds of students uncertain about tuition coverage, with some launching petitions and reporting “extremely stressful” financial situations.
Impact on Students and Institutions
Students across the province are experiencing “tuition sticker shock.” First-semester dental-hygiene student Daliah Gardoque described the situation as “extremely stressful,” noting she must rely on limited savings after the first semester. Mothercraft’s executive director Michele Lupa warned that the delay jeopardizes enrollment and the institution’s financial viability, especially as the child-care sector expands under federal initiatives. Career Colleges Ontario cautioned that the pause could force some schools to reapply for OSAP eligibility under stricter parameters, threatening program continuity.
Official Statements & Responses
He added that the government is developing low-interest, third-party student loans and will provide further details when available..
Verbatim Quotes
- “We're still waiting to hear if we continue to be an eligible institution for OSAP,” — Michele Lupa, executive director
- “As for the institutions, I recognize this pause will likely have an impact on enrollment and therefore on the financial viability of certain institutions," Quinn said, noting private institutions will need to reapply for OSAP eligibility with the ministry under stricter parameters.” — Nolan Quinn, universities minister
- “The government knew in 2023.” — Jessica Bell, NDP Member of Provincial Parliament for University-Rosedale
What’s Next
The ministry has indicated that private career colleges must reapply for OSAP eligibility under the forthcoming stricter criteria. While low-interest loan options are being prepared, no definitive timeline for reinstating OSAP payments has been announced. Stakeholders—including Career Colleges Ontario, affected institutions, and student groups—are awaiting further guidance from the government and the outcome of the police investigation.