Ontario has escalated the inquiry into financial aid disbursements at private career colleges to the provincial police following initial audit discoveries of “significant issues,” the government revealed on Tuesday.
Minister of Colleges and Universities Nolan Quinn stated that targeted inspections of career colleges were initiated last year in response to mounting worries about the utilization of the Ontario Student Assistance Program (OSAP). In August, KPMG was enlisted to conduct an audit.
Preliminary findings have raised red flags regarding the OSAP system’s integrity within the private post-secondary sector. Concerns encompass shared ownership, ties to immigration service firms, co-location of colleges with immigration recruitment firms, inadequate validation of student enrollment and outcomes, and a disproportionately high number of OSAP applications from specific geographic regions.
The government has informed the auditor general and referred the issue to the Ontario Provincial Police. Reports from The Canadian Press indicate that approximately $385 million in provincial grants were disbursed to students at seven career colleges in 2024-25, equal to the total amount allocated to students at publicly funded colleges across Ontario.
Career Colleges Ontario, an organization representing the sector and responsible for processing OSAP applications, has been cautioning the province about potentially “suspicious” OSAP activities since January 2023, as per court records.
Amidst the ongoing audit, all OSAP payments for career college students have been paused by the government, causing uncertainty across the sector. Delays in approval decisions for OSAP funding have left schools and students in a state of limbo, with operational disruptions and financial uncertainties.
Furthermore, students in various programs, including those at Mothercraft and the Toronto College of Dental Hygiene and Auxiliaries, are facing uncertainties due to the OSAP payment halt. The situation has led to mounting stress and concerns among students relying on financial aid to pursue their studies.
Minister Quinn acknowledged the impact of the funding pause and emphasized the necessity of safeguarding the OSAP system’s integrity. The government is exploring alternative student loan options and intends to communicate further details soon.
The opposition has criticized the government for the handling of the situation, with Ontario Liberal Party interim leader John Fraser expressing surprise at Minister Quinn’s continuation in office. NDP Member of Provincial Parliament for University—Rosedale Jessica Bell accused the Ford government of neglecting the issue, highlighting the challenges students face in accessing post-secondary education.
