Ontario proposes OSAP rules for private institutions

Ontario has announced proposed OSAP rules for private institutions that would strengthen oversight and enforcement, if passed. The measures would cap OSAP-funded enrolment growth, limit funding for predominantly online programs and introduce new penalties for career colleges.

Proposed OSAP rules for private institutions

The Ontario government says the proposed changes are intended to prevent abuse in the Ontario Student Assistance Program (OSAP), protect students and taxpayers, and require more transparent, student-focused practices from career colleges.

The province intends to introduce the measures as part of a broader legislative package on November 16, 2026.

For program details, read the Ontario PNP guide.

• Cap OSAP-funded enrolment growth at private institutions to prevent rapid expansion.
• Make predominantly online programs at private postsecondary institutions ineligible for OSAP.
• Require career colleges to maintain a physical campus.
• Restrict relationships between career colleges and third-party organizations, including immigration and recruitment firms, and ban unrelated businesses on campuses.
• Give the province enhanced authority to recover OSAP funding from private institutions by deeming them liable for their students’ loans.
• Strengthen requirements for institutions to verify student eligibility, class participation and coursework completion to retain OSAP eligibility.
• Establish new monetary penalties for violations of the Ontario Career Colleges Act, 2005.
• Enhance transparency about enforcement actions taken against career colleges.

Concerns over private-sector OSAP applications

The announcement follows what the province describes as significant and widespread concerns about growing volumes of OSAP applications in the private postsecondary sector. Those concerns led Ontario to pause OSAP payments associated with private postsecondary institutions and begin an external audit.

Ontario said the proposed measures also address concerns about compliance, accountability and educational quality in parts of the private postsecondary sector.

Other actions already announced

In February 2026, Ontario announced that it would no longer offer OSAP grants to students at career colleges as part of its effort to create a more sustainable OSAP system.

KPMG, engaged as the government's external auditor in August 2026, is continuing its audit. In October 2026, the province referred its concerns about OSAP and the private postsecondary sector to the Ontario Provincial Police and notified Ontario's Auditor General.

Source: news.ontario.ca