The OSAP Siphon: Seven Private Colleges Capture $385 Million in Public Grants

The scale of the disparity is stark: in the 2024-25 school year, provincial grants sent to students at just seven private career colleges totaled approximately $385 million, as first reported by CBC Toronto. According to data obtained by The Canadian Press through a freedom-of-information request, this single group of seven institutions received a total in provincial grants that equals the amount given to students at every one of Ontario's publicly funded colleges that same year—and exceeds the total granted to all Ontario university students.

While Ontario has roughly 170 career colleges, the data shows that explosive growth in the number of people receiving Ontario Student Assistance Program (OSAP) funding has been concentrated within a small subset of these schools. Some institutions saw their number of OSAP recipients jump from fewer than 100 students to several thousand within just a few years.

This surge comes at a time when Premier Doug Ford's government has drastically cut student assistance grants for those attending public colleges and universities, citing "unsustainable" OSAP costs. Reporting from The Canadian Press indicates that while funding for university and public college students remained relatively flat, nearly all recent growth in the program occurred among career college students.

Even the sector's own advocacy group, Career Colleges Ontario, has flagged the trend. Spokesperson Taylor Buck stated that the organization has raised concerns with the government regarding a small number of institutions, specifically citing "atypically large increases in the number of OSAP applications submitted that cannot be justified to the government’s satisfaction." Buck emphasized, however, that irregular conduct is "incredibly rare" among members.

Government action has already begun. The province recently disqualified students at five private career colleges from accessing OSAP for the upcoming school year. Court filings from three of those schools suggest the province's concerns center on asynchronous learning programs—online coursework completed on a student's own schedule—which the province alleges involved "compromised participation."

In response to the data, Colleges and Universities Minister Nolan Quinn's office has signaled further crackdowns. Dayna Smockum, director of communications for Quinn, stated that the province will introduce additional legislative measures this fall to "curb out-of-control growth" and strengthen accountability. Smockum noted that the ministry will not hesitate to cut institutions off from OSAP entirely when serious concerns are identified.

Some institutions have defended their growth as a reflection of shifting demographics. The Academy of Learning, which operates as a franchise and is among the schools with the largest growth in OSAP recipients, stated that its campuses serve newcomers and individuals retraining for second careers who cannot afford four-year degrees, asserting that their enrolment grew alongside these populations.