Ontario launches probe into eight private colleges over suspected OSAP fraud

Ontario has launched in-person inspections at eight private career colleges as investigators examine potential “irregularities or fraud” involving the province’s student financial assistance programme, deepening uncertainty for institutions and students affected by a sweeping funding suspension.

The provincial government said investigators had gathered information and interviewed individuals at the unnamed colleges. It also indicated that inspections could be extended to additional institutions and potentially the wider private career college sector.

The investigation comes after Ontario announced in early October that students attending all 242 private career colleges in the province would temporarily lose access to the Ontario Student Assistance Program (OSAP). The government cited serious concerns raised by the federal government, advocacy groups and internal audits and inspections.

Audits raise questions over student verification

Findings from an external audit conducted by KPMG reportedly identified several potential red flags in the system, prompting the province to refer the matter to the Ontario Provincial Police (OPP) for investigation.

Among the concerns were common ownership links between private career colleges and immigration services or recruitment firms, difficulties validating students and confirming their enrolment in courses, and unusually high concentrations of OSAP applications originating from the same geographic locations.

The government has also raised questions about whether some institutions could adequately verify student identities, course participation and educational outcomes.

The allegations have triggered scrutiny of the private college sector, but the province-wide suspension has also drawn strong criticism from college administrators, who argue that institutions have been targeted without sufficient evidence of individual wrongdoing.

Colleges face mounting financial pressure

The funding freeze is already disrupting education and threatening the financial stability of some institutions.

Trinity College, which offers programmes in health, business, technology and skilled trades, suspended in-person classes last week, citing the need to establish viable financial arrangements after the province-wide pause in OSAP funding.

An internal memo obtained by Global News said the suspension of instruction was linked to the college's efforts to manage the financial fallout.

Other private career colleges have also warned the government that they could be forced to close if access to OSAP funding is not restored.

For students, the uncertainty extends beyond financial aid. Disruptions to classes and the prospect of institutional closures could jeopardise their ability to complete their programmes, while those relying on student assistance face growing pressure to find alternative ways to pay tuition and other education-related costs.

Ontario plans tighter safeguards before restoring aid

The Ford government has acknowledged the concerns raised by colleges and students but maintains that OSAP access for private postsecondary institutions will not resume until stronger safeguards are in place.

Ontario's Minister of Colleges and Universities said the government was developing a strengthened validation process for institutions seeking OSAP approvals for the 2026-27 academic year. The process is expected to be implemented in the new year.

Proposed measures include caps on OSAP-funded enrolment at private colleges, the exclusion of online-only programmes from the scheme, and stronger student identification and verification requirements.

The government has also indicated that its review will consider institutional ownership structures, links with immigration services businesses, shared locations between colleges and recruitment firms, weaknesses in student verification, and unusual patterns in the geographic distribution of applications.

These measures are intended to address the concerns identified through audits and inspections, although the government has yet to restore funding to the affected institutions.

Bridge loans remain under development

Meanwhile, Ontario says it is working to connect thousands of affected students with banks and other financial institutions to explore bridge loans that could help them cover education costs while the suspension remains in force.

However, the government is still developing the eligibility criteria for the proposed assistance, leaving students without a clear timeline for accessing the loans.

As investigators continue their work, the province faces the challenge of addressing suspected misuse of public funds without causing further disruption to students whose education depends on financial assistance.

The inspections may help establish the extent of the alleged irregularities, but the immediate consequences of the funding freeze are already being felt across the sector. For students and colleges caught in the uncertainty, the restoration of financial aid remains dependent on the government's investigation and the implementation of its proposed safeguards.