Full Breakdown
Ontario Pauses OSAP Funding for Private Colleges Amid Audit, While Canada Funds International Programs
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Core Event: Province Halts OSAP Payments to Private Post-Secondary Institutions
Ontario’s Ministry of Colleges, Universities, Research, Innovation and Skills Development announced that all Ontario Student Assistance Program (OSAP) payments to private career colleges, private universities and other private post-secondary schools are being paused. The decision follows a KPMG audit of OSAP usage at career colleges and a referral to the Ontario Provincial Police (OPP) for “serious concerns” uncovered in the audit’s preliminary findings. Minister of Colleges and Universities Nolan Quinn said the pause is intended to protect taxpayer dollars while the audit continues.
Background & Context
OSAP provides federally and provincially funded loans and grants to eligible students. In recent years, the ministry identified “suspicious activity” at a small number of private career colleges, prompting targeted inspections and non-renewal notices for six campuses. The audit, launched in August, expanded the review to all private institutions. At the same time, the federal government announced new international assistance projects, allocating $39.2 million to four initiatives in Guyana and a $5 million One Guyana Digital Skills Development Program, plus a $120 million policy-based loan to Guyana over ten years.
Data & Statistics
- Seven career colleges with the highest OSAP usage in 2024-25 received $385 million in provincial grants, equal to the total granted to all publicly funded colleges that year.
- Approximately 80,000 private-college students are affected by the pause.
- Citi College of Canadian Careers saw OSAP enrolment rise from about 133 students in 2021-22 to 1,754 in 2024-25 – an increase of roughly 1,200 percent.
- Federal aid to Guyana includes $39.2 million for climate, biodiversity, food security and gender-equality projects, $5 million for digital-skills training, and $120 million in a loan through the Inter-American Development Bank.
Impact on Students
Students at affected institutions report immediate financial strain. Alessia Di Palma, a final-year ballet student, said the loss of OSAP “sunk” her heart and left her unable to cover rent despite working two jobs. Deanna Hutten, a master’s student at McMaster Divinity College, is borrowing from family and adding ten work hours per week to replace the aid.
Official Statements & Responses
- Minister Quinn indicated the province is “working on” low-interest, third-party loans for affected students but did not provide a timeline.
- Bianca Giacoboni, ministry spokesperson, said the audit has not yet confirmed whether the issues are “more widespread,” necessitating the pause.
- OPP spokesperson Tracey Mellersh confirmed the police review remains ongoing.
- Premier Doug Ford’s office said it is developing “short-term solutions” such as low-interest loans facilitated by financial institutions.
Criticism & Opposition
Andrew Barnsley urged a prompt reinstatement of OSAP or a clear timeline, describing the decision as “deeply disappointing.” Harris Rosen, counsel for Citi College, argued that the cited percentage increase is misleading because it is calculated from a low 2021-22 baseline.
Conflicting Reports & Gaps
- The ministry’s letter cites a 2,700 percent OSAP increase at an unnamed school, while Citi College’s data show a 1,200 percent rise, highlighting a discrepancy in reported growth rates.
- No specific deadline has been provided for the rollout of the promised low-interest loans, leaving uncertainty about when students might regain financial support.
What’s Next
The province plans to introduce legislation that would exclude predominantly online programs at private career colleges from OSAP eligibility. The KPMG audit continues, and the OPP’s review remains “ongoing.” Minister Quinn has indicated the government will keep monitoring the situation and pursue “options for low-interest, third-party loans” as the audit concludes.