Career colleges in Ontario could soon be subject to limits on the growth of students funded by financial aid, following explosive increases in the sector that prompted the government to call in the police.
Colleges and Universities Minister Nolan Quinn announced that legislation on Monday will include the as-yet undefined cap, limit Ontario Student Assistance Program funding to in-person and hybrid programs at those institutions and require them to have a physical location, and prohibit them from operating unrelated businesses on campus.
Quinn has said that concerns about career colleges being co-located with immigration and recruitment firms are among issues raised by an ongoing KPMG audit of the sector.
Ontario’s post-secondary system is intended to prepare students for in-demand careers, and any misuse of the system "for personal, predatory gain is entirely unacceptable,” Quinn said Thursday in a statement.
"These measures will strengthen OSAP integrity, hold institutions to higher standards and ensure public funding supports high-quality education and better outcomes for students,” he wrote.
While the KPMG audit is ongoing, Quinn has paused OSAP payments to all private post-secondary institutions, causing some students to drop out and some colleges to consider closing their doors.
Quinn has said the government is working on securing low-interest loans for students through banks until the pause is lifted in the new year, but he has so far not indicated a timeline for that.
Colleges and students are calling on the government to weed out any bad actors in a way that doesn't also penalize institutions and students who follow the rules. Premier Doug Ford has said KPMG auditors have been tasked with clearing low-risk schools first.
Between 2023-24 and 2024-25, the amount of provincial OSAP grants to career colleges nearly doubled, to about $1 billion in the latter year. That was largely due to activity at a small number of career colleges, according to data obtained by The Canadian Press through a freedom-of-information request.
The ministry alleges that some of those schools were unable to verify students were attending class or completing their own coursework, allegations the schools deny.
This report by The Canadian Press was first published Nov. 12, 2026.
