Ontario Strengthens OSAP Oversight as Audits of Private Postsecondary Institutions Continue

TORONTO,  The Ontario government is advancing new oversight measures for private postsecondary institutions as it continues a province-wide investigation into the integrity of the Ontario Student Assistance Program (OSAP). The proposed changes include stricter student verification requirements, limits on publicly funded enrolment and additional institutional approval controls aimed at preventing irregularities and potential fraud.

The Ministry of Colleges, Universities, Research Excellence and Security confirmed that investigators have begun conducting in-person inspections at private career colleges, while work continues on a strengthened validation process expected to take effect in the new year.

Ontario Expands Audits of Private Career Colleges

The ministry, supported by independent third-party auditor KPMG, is conducting a system-wide audit of private postsecondary institutions to assess compliance and safeguard public funding.

According to a statement issued by Minister Quinn on October 20, ministry investigators visited eight private career colleges during the previous week, gathering information and interviewing individuals as part of the ongoing investigation.

The government emphasized that its review extends beyond the eight institutions already inspected and encompasses the broader private postsecondary education sector.

The investigation forms part of Ontario’s efforts to strengthen accountability in the administration of OSAP, which provides financial assistance to eligible students pursuing postsecondary education.

New OSAP Validation Requirements Planned for 2027

The province is developing a strengthened validation process for private postsecondary institutions seeking OSAP approvals for the 2026–27 academic year.

Implementation is expected in the new year, following the introduction and potential passage of legislation intended to improve OSAP integrity and institutional oversight.

The proposed framework would introduce additional requirements designed to verify student eligibility, monitor institutional participation and reduce opportunities for misuse of government-funded financial assistance.

However, the implementation timeline remains dependent on legislative approval.

Government Proposes Limits on OSAP-Funded Enrolment

Under the measures outlined by the ministry, private postsecondary institutions could face new restrictions governing their participation in OSAP.

The proposed safeguards include:

• Caps on enrolment supported through OSAP funding.

• Exclusion of predominantly online-only programs from OSAP eligibility.

• Stronger student identification and verification controls.

• Enhanced institutional validation before OSAP participation resumes.

The government has indicated that OSAP will not resume for private postsecondary institutions until the strengthened validation process is established.

These restrictions could affect institutions that depend on OSAP-supported students, while also creating uncertainty for prospective students planning to finance their education through provincial assistance.

Alternative Student Financing Options Under Development

Alongside the regulatory review, Ontario is developing program criteria that could allow banks and other financial institutions to facilitate third-party loans for students.

The initiative could provide an alternative financing pathway while OSAP access remains restricted for affected private postsecondary institutions.

The ministry has not announced specific participating lenders, loan conditions, interest rates or an implementation date for the proposed financing arrangements.

Further details will be necessary to determine how accessible these alternatives may be for students and whether they can adequately address immediate funding requirements.

Ontario Acknowledges Financial Uncertainty for Students and Families

The government’s decision to maintain restrictions on OSAP participation highlights the tension between protecting public funds and ensuring students can access financial support.

Students considering private career colleges may face additional financial planning challenges until the revised approval framework becomes operational.

In its October 20 statement, the ministry acknowledged the potential consequences for students and families while maintaining that stronger safeguards are necessary to protect taxpayers.

The government said it intends to restore greater certainty and stability to the system as quickly as possible without compromising the integrity of student assistance funding.

Next Steps for Private Postsecondary Institutions

Ontario’s next steps include continuing sector-wide investigations, developing student financing criteria and preparing legislation to establish stronger OSAP oversight.

The government has not provided a definitive date for restoring OSAP access to private postsecondary institutions.

For colleges, students and financial institutions, the coming months will be important as the province determines how its proposed safeguards will operate and which institutions and programs will qualify under the revised system.

The ministry has committed to providing further updates as the investigation and regulatory reforms progress.