CHANDIGARH: Indian-origin students in Ontario, Canada, might face growing uncertainty over their education funding after the provincial government suspended OSAP payments to students attending private career colleges and referred concerns about potential funding irregularities to the Ontario Provincial Police (OPP).
The move follows a preliminary audit that flagged possible systemic issues, including common ownership structures among colleges, links with immigration recruitment services, gaps in student verification processes, and unusually high concentrations of OSAP applications from certain geographic areas.
This development is being closely been monitored by the Indian community because students from Punjab form a significant part of the international student population enrolled in some private career colleges across Ontario.
While most international students are not eligible for OSAP and are therefore not directly affected by the funding freeze, any enforcement action against colleges could create uncertainty around programmes, enrolment and student services. The government has not announced any immigration-related measures targeting students.
The provincial government revealed that six private career colleges were suspected of taking advantage of OSAP after the ministry of colleges and universities noticed a number of red flags. While six institutions have been suspended the government would take a broad approach to the entire sector in order the "support the integrity of the OSAP system" by pausing their eligibility altogether.
There are over 500 career colleges in the province and out of those 242 institutions were eligible for OSAP. Among them is AAPS College in Toronto and Mississauga, which offers education and training in the pharmaceutical, clinical research, food and nutrition, and healthcare sectors.
Earlier in July around 1,000 Punjabi students protested on the streets of Calgary against the denial of post-graduation work permits (PGWPs). They were reportedly lured by an immigration firm in Jalandhar whose owner also co-owned the Canadian Institute of Osteopathic Therapy (CIOT).
According to previously reported figures, seven career colleges received about $385 million in OSAP grants during the 2024-25 academic year.
Ontario Minister of Colleges, Universities Research Excellence and Security Nolan Quinn said that in late 2024 his ministry began receiving an increasing number of complaints about the growing volume of Ontario Student Assistance Program (OSAP) applications at private career colleges. On January 15, last year Career Colleges Ontario, which operates independently from government and provides financial aid processing services to its members, raised similar concerns about specific institutions.
"As part of its regular oversight, the ministry actively reviews complaints and monitors OSAP application activity. As concerns grew and following information provided by the federal government in May 2025 about certain private career colleges, the ministry expanded its review and, in July last year, launched targeted inspections. In December last year, the ministry also engaged the government’s Forensic Investigation Team (FIT) to provide advice to further strengthen oversight of the sector," Quinn said
Quinn further added that the ministry continued its work with Career Colleges Ontario to monitor compliance and also took corrective action and, in May this year, issued notices of non-renewal to six campuses. The government has since suspended their OSAP eligibility.
"Given the volume and nature of the issues identified by the ministry, in August this year the government engaged an independent third-party auditor, KPMG, to assess the broader integrity of OSAP applications at private postsecondary institutions. While that work is ongoing, preliminary findings have identified serious concerns about the integrity of the OSAP system in the private postsecondary sector," the minister said.
The minister further added that these include common ownership, the involvement of immigration services firms and co-location between private career colleges and immigration recruitment or immigration services firms, inadequate student validation and verification of course enrolment and outcomes, and unusually high concentrations of OSAP applications submitted from the same geographic locations.
"As a result, the government notified the Auditor General last week and has also referred this matter to the Ontario Provincial Police and has also paused all OSAP payments associated with private postsecondary institutions as the audit proceeds. Going forward, all private postsecondary institutions will have to meet stricter criteria before regaining OSAP eligibility," Quinn said.
Quinn further stated that many of the concerns identified to date have been concentrated in online-only programs. As a result, the government intends to introduce legislation to exclude predominantly online programs at private career colleges from OSAP eligibility. This builds on recent changes that removed OSAP grant eligibility for all career colleges.
"The government recognizes that many students at private postsecondary institutions rely on financial assistance to complete their studies. To support students during this transition, the Ontario government is working on options to provide low-interest, third-party loans for students enrolled at private postsecondary institutions and is in discussions with financial institutions to facilitate these loans. More information will be made available to students when ready," the minister added.
