Ontario Private Colleges Saw Major OSAP Grant Increases, Sparking Concerns

Recent data shows that a small number of private career colleges in Ontario have experienced an extraordinary increase in students receiving Ontario Student Assistance Program (OSAP) funding. In the 2024-25 academic year, just seven of these institutions accounted for approximately $385 million in provincial grants. This amount matches the total provincial grants given to students across all publicly funded colleges in Ontario and exceeds the total for all university students in the province.

This trend follows a period where the province had already noted that nearly all recent growth in OSAP usage was attributed to students at career colleges, while funding for university and public college students remained relatively stable. The rapid expansion at these specific private institutions has raised concerns among sector representatives themselves, with Career Colleges Ontario acknowledging they have flagged issues regarding unusually large increases in OSAP applications to the government.

The Ministry of Colleges and Universities has indicated that it is prepared to take further action against institutions with identified problems. Officials stated that when serious concerns arise, they will not hesitate to completely cut off a college's access to OSAP. Legislative measures are also planned for the fall to improve accountability and ensure responsible use of public funds.

These developments come after the ministry disqualified students at five private career colleges from receiving OSAP for the upcoming academic year. Legal challenges by some of these colleges cite concerns over asynchronous learning programs, a flexible online format that the province alleges may have led to compromised student participation.

One affected institution, the Academy of Learning, stated that its enrollment growth mirrors demographic shifts, serving newcomers and those seeking career retraining who cannot afford longer degree programs. The Academy emphasized its commitment to integrity and graduate employment. However, data from specific Academy of Learning locations shows dramatic increases in OSAP recipients over recent years, far exceeding typical growth rates observed in other provinces.