The Ontario government has paused all OSAP payments associated with private postsecondary institutions and referred concerns about the integrity of the student aid system to the Ontario Provincial Police, the Minister of Colleges, Universities, Research Excellence and Security said in a statement Tuesday.
The ministry began receiving an increasing number of complaints about OSAP applications at private career colleges in late 2024. It launched targeted inspections in July 2025 and engaged the government’s Forensic Investigation Team in December 2025. In May 2026, it issued notices of non-renewal to six campuses, whose OSAP eligibility has since been suspended.
In August, the government engaged KPMG to assess the broader integrity of OSAP applications at private postsecondary institutions. Preliminary findings identified serious concerns, including common ownership, the involvement of immigration services firms, inadequate validation of student enrolment and outcomes, and unusually high concentrations of applications from the same geographic locations. The government notified the Auditor General last week.
Going forward, all private postsecondary institutions will have to meet stricter criteria before regaining OSAP eligibility. Because many of the concerns have been concentrated in online-only programs, the government intends to introduce legislation to exclude predominantly online programs at private career colleges from OSAP eligibility.
To support students during the transition, the province is working on options for low-interest, third-party loans for students at private postsecondary institutions and is in discussions with financial institutions.
