Full Breakdown
Ontario Pauses OSAP Funding for Private Career Colleges Amid Fraud Audit
By Drooid · · How we work
Core Event: Province Halts OSAP Payments to Private Career Colleges
Ontario’s Ministry of Colleges, Universities, Research Excellence and Security announced a province-wide pause on the Ontario Student Assistance Program (OSAP) for students attending private career colleges. The decision follows a KPMG audit that identified “serious concerns” about the integrity of the system, including alleged involvement of immigration-service firms, inadequate student validation, and unusually high concentrations of applications from single locations. The ministry has referred the matter to the Ontario Provincial Police for investigation.
Background & Context
The OSAP freeze builds on earlier actions by colleges and universities minister Nolan Quinn. In May, Quinn barred six schools—including four Academy of Learning locations—from accessing OSAP for the 2026-27 academic year after inspections suggested third parties completed entire courses in a single day and some students could not identify their school or program. Ontario rules impose a three-year ineligibility period for non-compliant institutions.
Data & Statistics
- A freedom-of-information request obtained by The Canadian Press shows the Academy of Learning’s Bay Street campus grew from 996 OSAP-eligible students in 2021-22 to 7,435 in 2024-25, generating over $108 million in OSAP grants.
- The Brampton East campus rose from about 74 students in 2020-21 to 4,260 in 2024-25, accounting for more than $64 million in grants.
- Together with the North York campus, these three locations represent roughly one-fifth of the nearly $1 billion in OSAP grants awarded to all career colleges that year.
Impact on Students
The pause has left thousands of learners without the financial support they relied on for tuition, rent and basic living expenses.
- Aaron Madgett, recently laid off from Algoma Steel, had his approved paramedic-training funding withdrawn and now depends on food-bank assistance and family support.
- Moriah Ferron, a mother of four in a paralegal program, lost OSAP aid that covered rent and childcare and is borrowing to keep utilities running.
- Melina Luther and her husband Dustin Perry, both attending CTS Canadian Career College, face an unclear path forward for their education and family finances.
Official Statements & Responses
- Minister Nolan Quinn said the pause is necessary to protect taxpayer dollars and “hold bad actors accountable.”
- “Institutions are not permitted to use OSAP approval as a marketing tool or identify the availability of OSAP assistance, directly or indirectly, in any advertising or promotion of the institution,” — Bianca Giacoboni, press secretary for Quinn.
Criticism & Opposition
Liberal critic Tyler Watt argued the blanket freeze penalizes legitimate students while targeting a “handful” of schools. He called the decision “callous” and urged an immediate restoration of funding for students who “did nothing wrong.”
Conflicting Reports & Gaps
The ministry’s allegations of fraud have not been proven in court. The Academy of Learning contends the decision was “unreasonable and procedurally unfair,” citing new approval criteria and undisclosed adverse information as procedural flaws. No judicial findings have yet confirmed the alleged misconduct.