‘Caught in the middle’ More than 500 private career colleges impacted by OSAP freeze

More than 500 private career colleges are scrambling to assess their options after the Ford government cut off their eligibility for student loans and grants in the wake of a potential OPP criminal investigation into the sector.

On Tuesday, the province revealed that six private career colleges were suspected of taking advantage of Ontario’s student assistance program (OSAP) after the ministry of colleges and universities noticed a number of red flags.

“There were numerous allegations that came forward, including [applications concentrated in] geographic locations, specific areas of students, a high density in certain areas, as well as co-ownership between the institutions themselves as well as immigration firms,” said Nolan Quinn, the Minister of Colleges and Universities.

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While six institutions were suspended by the ministry, the government said it would take a broad approach to the entire sector in order the “support the integrity of the OSAP system” by pausing their eligibility altogether.

Among the 500 institutions — with 737 campuses in total — impacted by the change is AAPS College in Toronto and Mississauga which offers education and training in the pharmaceutical, clinical research, food and nutrition, and healthcare sectors.

Shortly after the announcement, Laleh Bighash, dean of Scientific Affairs, received a memo from the ministry informing her of the pause “due to the fraudulent activities” with little information on how students and institutions could navigate the weeks and months ahead.

“I would say anywhere between 75 to 80 per cent of [AAPS students] use OSAP,” Bighash said. “These are students who otherwise wouldn’t be able to afford their education.”

While the college is expecting an impact on future enrolment, Bighash said the main concern is the current roster of students who rely on support payments for their education.

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“There are students who are currently in the college and they’re half paid through the program and they’ve already committed OSAP dollars and they don’t know where to go,” Bighash said.

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“At this point there is no clarity on how to deal with the students who’ve been caught in the middle, through no fault of their own, and we do feel for them, and I also feel for the staff and faculty. We’re remaining focused on how to deal with and how to help them navigate.”

That message is being echoed by Career Colleges Ontario, the association representing hundreds of institutions, which is urging the Ford government to reinstate student financial aid for career college students who were already approved for funds and are actively attending in-person classes.

The association, which had been warning the government about possible misuse of OSAP since 2023, says the government should be taking targeted action to address those concerns, not disrupting the education of students who have followed the rules.

When the government first announced the changes, Minister Quinn offered vague details on how students currently enrolled in a career college will be able to access funds — stressing that while the OSAP pipeline is being shut off, private institutions could step in.

“To support these students, the government is working on options to provide low-interest third-party loans for students enrolled at private post-secondary institutions, and is in discussions with financial institutions to facilitate these loans,” Quinn said.

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“We will provide more information on these options as soon as we can.”

Meanwhile, institutions will be able to apply for OSAP eligibility with the ministry “under stricter parameters.”

Bighash, with AAPS College, said while she supports the government’s crackdown on “bad actors” in the system, she fears institutions with good track records are being unfairly swept up in the response.

“I think it might have also some unintended consequences for legitimate students and legitimate, solid, career-focused institutions that might not be able to survive,” Bighash said.

Bighash said her college has been regularly audited by the Ministry of Colleges and Universities, has to apply for registration every year, and boasts consistent OSAP repayments.

“Our OSAP default rate is among the lowest when you compare it to the public or private institution,” she said.

“We actually would like to be a part of conversation to see how they can put more safeguards to protect OSAP, to protect the students, and to protect our faculties and the employers everybody.”

Bighash is calling on the government to take a “risk-based approach” to the file and warns that the government’s pledge to “protect Ontario” from the trade war with the United States will also face an impact.

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“We have students who have had been affected by tariffs, and they come to us to get new skills, new experience, and you know move on,” Bighash said.

“So it makes it sort of a double-edged sword. We’re trying to help the economy at the same time. We really don’t know how we can actually focus on that rather than being in this firefighting mode.”