Ontario freezes OSAP payments to private career college students amid police investigation

Floyd Brenz., Philippine Canadian Inquirer
October 10, 2026

Photo Courtesy: CBC News

Thousands of students attending private career colleges in Ontario face uncertainty after the provincial government suspended student financial aid payments while investigating concerns over the integrity of the Ontario Student Assistance Program (OSAP).

The Ford government announced the freeze as preliminary findings from an independent audit raised concerns about possible irregularities in the private post-secondary education sector. The province has also referred the matter to the Ontario Provincial Police for investigation.

Colleges and Universities Minister Nolan Quinn said the review identified potential red flags, including shared ownership among institutions, links with immigration services firms, insufficient verification of students and courses, and unusually high concentrations of applications originating from certain locations.

The government hired KPMG in August to examine the program’s integrity. Officials have not publicly detailed the specific allegations under investigation.

The suspension affects students enrolled at private career colleges while the broader review continues, raising concerns among students who depend on government assistance to cover tuition and other educational expenses.

In the 2024–2025 academic year, more than 87,000 students at private institutions received nearly $2.4 billion in OSAP grants and loans. About half of that funding went to students attending just 10 colleges, according to reported government data.

Concerns about the program’s administration had surfaced years earlier. Career Colleges Ontario reportedly raised concerns about potentially suspicious activity with the ministry in 2023 and requested a police referral in 2024. The province says it contacted police on October 2, 2026.

The investigation comes after Ontario introduced changes to OSAP earlier this year, reducing grants and increasing the share of funding provided as loans for students at publicly assisted colleges and universities. Students attending private career colleges are also no longer eligible for grants under the revised rules.

The province is expected to consider further legislative changes, including restrictions on OSAP eligibility for online-only programs and tighter requirements for institutions receiving funding.

While the government says the pause is intended to protect public funds and address potential misuse, students and colleges not implicated in any wrongdoing are also facing uncertainty as they wait for the review to conclude.