Ontario pauses OSAP eligibility for 242 private career colleges

What the province did

Six private career colleges faced suspicion of abusing the Ontario Student Assistance Program. The government suspended all six. The ministry of colleges and universities had spotted red flags. It then paused eligibility for the whole sector, to "support the integrity of the OSAP system". The ministry says 242 institutions were OSAP-eligible, out of more than 500 career colleges in the province. Global News reported that the move came after a potential OPP criminal investigation into the sector. Among the 242 is AAPS College. It runs campuses in Toronto and Mississauga and teaches pharmaceutical, clinical research, food and nutrition and healthcare subjects.

Half-paid, mid-semester

Laleh Bighash is dean of scientific affairs at AAPS College. She received a ministry memo about the pause "due to the fraudulent activities," with little information on what came next. The main concern, she said, is the students already on the roster. "They're half paid through the program and they've already committed OSAP dollars and they don't know where to go," Bighash said. The college does expect an impact on future enrolment.

Career Colleges Ontario represents hundreds of institutions. It wants the province to reinstate aid for students with approved funds who attend in-person classes. The association says it warned the government about possible misuse of OSAP since 2023. It argues for targeted action rather than disrupting students who followed the rules.

The Toronto Sun put the number of private college students no longer receiving OSAP at 80,000.

The pause sits on top of other changes to student aid. Ontario announced in February it would cut the maximum grant share of OSAP from 85 per cent to 25 per cent, The Record reported. The change took effect Aug. 1, Global News reported. The province also lifted a seven-year tuition freeze, allowing increases of up to two per cent a year for three years.

The loan option, still unformed

Colleges and Universities Minister Nolan Quinn said the government is working on low-interest third-party loans for students at private institutions and is in discussions with financial institutions. "We will provide more information on these options as soon as we can," Quinn said. The federal government pays up to 60 per cent of the money OSAP pays out, the Toronto Sun reported.

Quinn has said the changes will ensure the sustainability of the program. His press secretary, Bianca Giacoboni, said the previous OSAP framework was no longer sustainable. The province also points to a $6.4-billion fund for colleges and universities. Quinn says it will keep institutions resilient to growing demand. The province will spread the money over four years. Frequency News reported that the province began receiving an increasing number of complaints about the growing volume of OSAP applications at private career colleges.

What happens next

Institutions will be able to apply for OSAP eligibility "under stricter parameters," Global News reported.

CBC reported that students at private career colleges are worried the province will extend the pause to 2027.

Bighash said AAPS supports a crackdown on "bad actors" but fears the crackdown is sweeping up colleges with good records. She said the college is concentrating on helping its students.