Private career colleges will be held financially liable for OSAP misuse and face limits on increases to student aid “to prevent rapid expansion” under new legislation to address growing concerns about fraud.
asserted
colleges → hold → fraud
Schools will also have to operate physical campuses, be banned from close ties with immigration and recruitment firms and require more stringent student verification, the government said Thursday in announcing the changes that come after it temporarily banned student aid from all private colleges while a third-party audit looking for suspicious activity continues.
“
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audit → have → activity
Ontario’s post-secondary system is intended to prepare students for our province’s in-demand careers of tomorrow and any misuse of this system for personal predatory gain is entirely unacceptable,”
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misuse → intend → gain
Colleges and Universities Minister Nolan Quinn said in a written statement about the new legislation, to be introduced next week.
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Quinn → say → legislation
At Redeemer University, students can defer tuition and on-campus housing payments.
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students → defer → campus
‘In the long
“These measures will strengthen OSAP integrity, hold institutions to higher standards and ensure public funding supports high-quality education and better outcomes for students.”
The government has come under considerable criticism for its handling of the private college OSAP file, after concerns were flagged as early as 2023 about misuse, with critics blaming poor oversight.
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critics → strengthen → oversight
In February, the province banned private career colleges from any OSAP non-repayable grants — following in the federal government’s footsteps — and in October put a freeze on all OSAP loans as well.
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province → ban → loans
The move left about 250 such schools in the lurch, saying they — and their students — were being punished for the actions of a few.
But the government has said it needed to get a handle on the scope of potential misuse, and has already referred some audit findings to the Ontario Provincial Police.
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it → leave → Police
Thursday’s announcement does not include any measures to provide students with third-party loans in the interim, which Quinn has promised.
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Quinn → include → which
Some colleges have allowed students to defer tuition and other fee payments, and even opened up food banks to help them manage without OSAP funds.
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them → allow → funds
The changes, which are expected to come into force in the new year, “would also strengthen accountability by making institutions more financially responsible for the OSAP funding disbursed to their students when they fail to meet program requirements or engage in conduct that undermines the integrity of the OSAP program,” the government said in a written release Thursday.
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government → expect → release
Colleges will face increased fines for any misconduct, and will have to “transparently and publicly disclose to students certain enforcement actions taken against them” by the provincial superintendent in charge of overseeing private colleges.
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Colleges → face → colleges
Predominantly online programs, which were allowed to access OSAP during the pandemic, will be permanently banned from student aid, with colleges now required to have in-person campuses.
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colleges → allow → campuses
“Some operators are currently using home addresses or co-working spaces to conduct online classes, creating issues related to inspections and a lack of access to the campus for students,” the government wrote.
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government → use → students
“There is also no requirement for private colleges to provide or maintain publicly available operating hours,” which will change under the proposed legislation, giving students access to instructors and ministry inspectors better oversight and access to records.
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which → be → records
On Monday, Premier Doug Ford said OSAP changes were on the way, and had previously said the government wanted to fast-track “low-risk” private colleges through the audit process.
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government → say → process
“We’re moving as quickly as possible,” he said.
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he → move → ?
Between 2023-24 and 2024-25, the amount of provincial OSAP money provided to career colleges almost doubled to about $1 billion for about 240 eligible schools, The Canadian Press has reported.
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Press → provide → schools
In 2024-25 alone, some seven private colleges received $385 million in OSAP, equal to the amount all of the province’s public colleges received.
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all → receive → colleges
Ford’s government initially reacted to OSAP’s problems by slashing grants, which hurt blameless public institutions and their students.
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which → react → institutions
Ford’s government initially reacted to OSAP’s problems by slashing grants, which hurt blameless public institutions and their students.
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which → react → institutions
Quinn has also said the province is trying to work out agreements with financial institutions for students to receive third-party loans in the interim, but Thursday’s announcement provided no further details.
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announcement → say → details
It may prove to be a tough task given the higher loan repayment default rate among private career college graduates.
uncertain
It → prove → graduates
In the meantime, some colleges have allowed students to defer tuition and other fees until student aid is sorted out.
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aid → allow → tuition
Other colleges have suspended programs.
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colleges → suspend → programs
Private colleges typically have shorter programs but charge much higher tuitions, so students rely on OSAP to help cover their costs.
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students → have → costs
Critics had accused the government of punishing an entire sector because of a handful of “bad actors,” but Quinn had said his ministry needed to get a handle of the scope of the fraudulent activity, including allegations that thousands of OSAP applications came from a single IP address.
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thousands → accuse → address
This is a developing story.
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This → develop → ?
The Aporia
