TORONTO, The Ontario government is preparing new legislation to strengthen oversight of private postsecondary institutions, tighten eligibility requirements for the Ontario Student Assistance Program (OSAP) and introduce tougher enforcement measures aimed at protecting students and taxpayers.
The proposed reforms would give the province greater authority to monitor career colleges, restrict questionable recruitment practices and recover public funding where necessary. The measures follow growing concerns about OSAP applications, institutional accountability and educational standards within parts of Ontario’s private postsecondary sector.
The government intends to introduce the legislative changes on November 16, 2026, as part of a broader package of reforms.
Ontario Moves to Strengthen OSAP Accountability
The proposed legislation represents a significant expansion of provincial oversight of private career colleges participating in OSAP.
Ontario officials say the changes are intended to prevent potential misuse of student financial assistance while ensuring institutions deliver education that supports employment opportunities.
“Ontario’s postsecondary system is intended to prepare students for our province’s in-demand careers of tomorrow and any misuse of this system for personal, predatory gain is entirely unacceptable,” said Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security. “These measures will strengthen OSAP integrity, hold institutions to higher standards and ensure public funding supports high-quality education and better outcomes for students.”
The announcement follows concerns about the increasing number of OSAP applications associated with private postsecondary institutions.
Those concerns prompted the government to pause OSAP payments associated with private institutions and commission an independent external audit.
New Restrictions on Enrolment and Online Programs
Under the proposed framework, Ontario would introduce limits on OSAP-funded enrolment growth at private postsecondary institutions.
The measure is designed to prevent rapid expansion that could place additional pressure on public student assistance funding. The province says the approach would align Ontario with policies adopted in other Canadian jurisdictions, including Alberta.
Another significant proposal would make predominantly online programs offered by private postsecondary institutions ineligible for OSAP funding.
Career colleges would also be required to maintain physical campuses, establishing clearer operational requirements for institutions seeking access to government-supported student financing.
These restrictions could require some private education providers to reassess their delivery models and enrolment strategies.
Government Targets Recruitment Practices and Financial Risks
Ontario also plans to tighten rules governing relationships between career colleges and third-party organizations, including immigration consultants and student recruitment firms.
The proposed legislation would restrict certain business arrangements and prohibit unrelated businesses from operating on career college campuses.
According to the government, these measures are intended to reduce potential conflicts of interest and strengthen accountability throughout the student recruitment and enrolment process.
Expanded Powers to Recover OSAP Funding
One of the more consequential proposals would allow the province to hold private institutions financially responsible for their students’ OSAP loans.
By deeming institutions liable for those loans, Ontario would gain enhanced authority to recover public funding.
The government also intends to strengthen requirements for colleges to verify student eligibility, classroom participation and completion of coursework.
Institutions would need to demonstrate compliance with these requirements to maintain their eligibility for OSAP funding.
Additional enforcement measures would introduce new monetary penalties for violations of the Ontario Career Colleges Act, 2005.
The province also proposes greater public transparency regarding enforcement actions against career colleges, potentially providing students with more information about institutional compliance.
Independent Audit and Police Referral Remain Underway
The proposed reforms come amid an ongoing examination of OSAP administration in Ontario’s private postsecondary sector.
In August 2026, the provincial government engaged professional services firm KPMG to conduct an external audit. That review remains underway.
In October, Ontario referred its concerns involving OSAP and private postsecondary institutions to the Ontario Provincial Police and notified the province’s Auditor General.
The referrals do not, by themselves, establish wrongdoing by any particular institution.
The latest proposals also follow changes announced in February 2026, when Ontario ended OSAP grants for students attending career colleges as part of efforts to improve the financial sustainability of the assistance program.
Implications for Ontario’s Private Postsecondary Sector
If approved, the legislation could significantly change how private career colleges operate, recruit students and access publicly supported education financing.
Institutions would face closer scrutiny of enrolment growth, academic participation, student eligibility and relationships with outside businesses.
For students, the reforms are intended to provide stronger safeguards against questionable institutional practices while improving educational accountability.
The government maintains that private postsecondary institutions remain an important part of Ontario’s education system, particularly in preparing workers for in-demand occupations.
With legislation expected to be introduced on November 16, the proposed changes mark another step in Ontario’s effort to strengthen financial oversight, protect taxpayer-funded student assistance and improve confidence in the province’s career college sector.
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