TORONTO — Ontario has paused all Ontario Student Assistance Program (OSAP) payments linked to private postsecondary institutions while an independent audit examines concerns about the integrity of applications in the sector.
The province said on Tuesday that preliminary findings from an ongoing review by KPMG have raised concerns involving student validation, enrolment verification, institutional ownership structures and the geographic concentration of OSAP applications. The matter has also been referred to the Ontario Provincial Police, while the Auditor General has been notified.
Province Expands Review of Private Postsecondary Institutions
The announcement was made in a statement by Ontario’s Minister of Colleges, Universities, Research Excellence and Security, who outlined a review process that began after the ministry received a growing number of complaints in late 2024.
“In late 2024, the Ministry of Colleges, Universities, Research Excellence and Security (MCURES) began receiving an increasing number of complaints about the growing volume of OSAP applications at private career colleges. On January 15, 2025, Career Colleges Ontario, which operates independently from government and provides financial aid processing services to its members, raised similar concerns about specific institutions.
As part of its regular oversight, the ministry actively reviews complaints and monitors OSAP application activity. As concerns grew and following information provided by the federal government in May 2025 about certain private career colleges, the ministry expanded its review and, in July 2025, launched targeted inspections. In December 2025, the ministry also engaged the government’s Forensic Investigation Team (FIT) to provide advice to further strengthen oversight of the sector.
The ministry continued its work with Career Colleges Ontario to monitor compliance. The ministry also took corrective action and, in May 2026, issued notices of non-renewal to six campuses. The government has since suspended their OSAP eligibility.”
KPMG Audit Identifies Preliminary Concerns
The province expanded its examination of the sector in August 2026 by bringing in KPMG as an independent third-party auditor.
“Given the volume and nature of the issues identified by the ministry, in August 2026 the government engaged an independent third-party auditor, KPMG, to assess the broader integrity of OSAP applications at private postsecondary institutions. While that work is ongoing, preliminary findings have identified serious concerns about the integrity of the OSAP system in the private postsecondary sector. These include common ownership, the involvement of immigration services firms, inadequate student validation and verification of course enrolment and outcomes, and unusually high concentrations of OSAP applications submitted from the same geographic locations.”
The government said the review remains underway and additional information is being gathered.
“As a result, the government notified the Auditor General last week and has also referred this matter to the Ontario Provincial Police. The ministry is continuing its work to investigate and gather information, with the support of KPMG. The government has also paused all OSAP payments associated with private postsecondary institutions as the audit proceeds.”
Stricter OSAP Eligibility Rules Planned
Ontario said private postsecondary institutions will face tougher requirements before they can regain access to OSAP funding.
“Going forward, all private postsecondary institutions will have to meet stricter criteria before regaining OSAP eligibility. Further details will be provided at a later date.”
Online programs are expected to face additional restrictions under planned legislation.
“Many of the concerns identified to date have been concentrated in online-only programs. As a result, the government intends to introduce legislation to exclude predominantly online programs at private career colleges from OSAP eligibility. This builds on recent changes that removed OSAP grant eligibility for all career colleges.”
Province Exploring Alternative Student Loans
The payment pause could have financial implications for students who rely on OSAP to cover tuition and other education-related expenses at private institutions. The province said it is examining an alternative financing arrangement during the transition.
“The government recognizes that many students at private postsecondary institutions rely on financial assistance to complete their studies. To support students during this transition, the Ontario government is working on options to provide low-interest, third-party loans for students enrolled at private postsecondary institutions and is in discussions with financial institutions to facilitate these loans. More information will be made available to students when ready.”
The government has not provided a timeline for completing the KPMG audit or restoring OSAP eligibility. Further eligibility requirements and details about potential third-party student loans are expected to be released as the review progresses.