The Ontario government plans to introduce new legislation to prevent abuse of Ontario Student Assistance Program (OSAP) funding.
The changes are part of a provincial response to the growing number of OSAP applications for private institutions that resulted in a system-wide audit conducted by KPMG, a global accounting and professional services organization.
Audit finding showed irregularities in student enrollment and class participation which triggered suspicions of fraud and systemic misuse, resulting in a complete pause of payments and new applications in the private sector at the beginning of October.
This decision has been met with criticism towards Ontario Premier Doug Ford and protests as part of the “Hands Off Our Education” campaign organized by the Canadian Federation of Students–Ontario.
Prior to electing to ultimately pause funding and applications to private institutions, the provincial government halted OSAP grants that do not require repayment for students at private career colleges last February.
“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 new legislation proposes the following measures if passed:
- Cap OSAP-funded enrolment growth at private institutions to prevent rapid expansion, aligning with other Canadian jurisdictions like Alberta
- Make predominantly online programs at private postsecondary institutions ineligible for OSAP and require career colleges to maintain a physical campus
- Restrict relationships between career colleges and third-party organizations, such as immigration and recruitment firms, including by banning unrelated businesses on campuses
- Give the province enhanced authority to recover OSAP funding from private institutions by deeming them liable for their students’ loans
- Strengthen requirements for institutions to verify student eligibility, class participation and completion of coursework to retain OSAP eligibility
- Establish new monetary penalties for violations of the Ontario Career Colleges Act, 2005
- Enhance transparency regarding enforcement actions taken against career colleges
The provincial government has stated that these changes are designed to support the objective of ensuring a strong postsecondary system that is accountable, transparent and effective in preparing students for successful, good-paying careers.
