Ontario to cap OSAP growth at career colleges following massive increases

Career colleges in Ontario could soon be subject to limits on the growth of students funded by financial aid, following explosive increases in the sector that prompted the government to call in the police.

Colleges and Universities Minister Nolan Quinn announced that legislation will be introduced on Monday, saying the significant concerns around Ontario Student Assistance Program usage in the sector are far more widespread than first suspected and the bill is intended to increase oversight and accountability.

"What we have found here are not minor administrative concerns, but rather co-ordinated, sophisticated efforts to take advantage of students and taxpayers for personal gain," he said Thursday at a press conference.

Career Colleges Ontario, which processes OSAP applications for the schools, has removed 24 more campuses from their membership, with an additional 13 under review, Quinn said. The association has also identified concerns about backdating applications at 33 additional campuses, he said.

"This behaviour is despicable, and it must be stopped," Quinn said.

The legislation is set to include the as-yet undefined cap, limit OSAP funding to in-person and hybrid programs at those institutions and require them to have a physical location, and prohibit them from operating unrelated businesses on campus.

Quinn has said that concerns about career colleges being co-located with immigration and recruitment firms are among issues raised by an ongoing KPMG audit of the sector.

Critics say the problem is one of the government's own making, allowing online-only programs to qualify for OSAP in the first place during the COVID-19 pandemic and not watching closely enough as growth skyrocketed.

"If the minister is indicating that this is so systemic, how come they let it get this bad?" Liberal critic Tyler Watt said.

NDP critic Peggy Sattler said oversight measures proposed in the bill are important, but it never should have come to this.

"This bill is a classic case of closing the barn door after the horses are gone," she said.

Between 2023-24 and 2024-25, the amount of provincial OSAP grants to career colleges nearly doubled, to about $1 billion in the latter year. That was largely due to activity at a small number of career colleges, according to data obtained by The Canadian Press through a freedom-of-information request.

The ministry alleges that some of those schools were unable to verify students were attending class or completing their own coursework, allegations the schools deny.

While the KPMG audit is ongoing, Quinn has paused OSAP payments to all private post-secondary institutions, causing some students to drop out and some colleges to consider closing their doors.

Quinn has said the government is working on securing low-interest loans for students through banks until the pause is lifted in the new year, but he has so far not indicated a timeline for that.

Colleges and students are calling on the government to weed out any bad actors in a way that doesn't also penalize institutions and students who follow the rules. Premier Doug Ford has said KPMG auditors have been tasked with clearing low-risk schools first.

Interim Liberal leader John Fraser said the government is holding innocent students hostage with the OSAP pause.

"The rent doesn't wait," he said. "The grocery bill doesn't wait. The kids' clothes don't wait, and this government's saying, 'wait,'" Fraser said.

This report by The Canadian Press was first published Nov. 12, 2026.

By Allison Jones | Copyright 2026, The Canadian Press. All rights reserved.