Ontario has paused OSAP at private postsecondary institutions while an independent audit examines concerns about the integrity of applications in the sector. The Ministry of Colleges, Universities, Research Excellence and Security said preliminary findings raised concerns including inadequate student validation and unusually concentrated application activity.
Audit findings prompt province-wide payment pause
The Ontario government engaged KPMG in August 2026 to assess the broader integrity of OSAP applications at private postsecondary institutions. The audit is ongoing.
According to the minister’s statement, preliminary findings identified concerns involving common ownership, immigration services firms, co-location between private career colleges and immigration recruitment or immigration services firms, student validation and verification of course enrolment and outcomes, and high concentrations of OSAP applications from the same geographic locations.
The government has notified the Auditor General and referred the matter to the Ontario Provincial Police. The ministry said it will continue investigating and gathering information with KPMG’s support.
Six campuses had OSAP eligibility suspended
The ministry said it began receiving an increasing number of complaints about OSAP applications at private career colleges in late 2024. Career Colleges Ontario raised similar concerns about specific institutions on January 15, 2025.
Following information provided by the federal government in May 2025, the ministry expanded its review and launched targeted inspections in July 2025. It later sought advice from the government’s Forensic Investigation Team in December 2025.
In May 2026, the ministry issued notices of non-renewal to six campuses. Their OSAP eligibility has since been suspended.
Stricter eligibility and online-program changes planned
The government said private postsecondary institutions will need to meet stricter criteria before they can regain OSAP eligibility, with further details to be provided later.
It also intends to introduce legislation that would exclude predominantly online programs at private career colleges from OSAP eligibility. The statement said this follows recent changes removing OSAP grant eligibility for all career colleges.
Province exploring loan options for affected students
Ontario said it recognizes that many students at private postsecondary institutions rely on financial assistance to complete their studies. The government is working on options for low-interest, third-party loans and is discussing these loans with financial institutions.
More information will be made available to students when it is ready, the statement said.
Source: news.ontario.ca