A recent data analysis reveals that a small group of private career colleges in Ontario has driven a significant surge in student financial aid recipients, raising concerns within the sector. Among approximately 170 career colleges, a handful saw a remarkable increase in the number of students accessing grants and loans through the Ontario Student Assistance Program (OSAP), with some institutions witnessing a surge from fewer than 100 to several thousand applicants within just a few years.
In the fiscal year 2024-25, seven career colleges collectively received approximately $385 million in provincial grants, surpassing the total amount allocated to all publicly funded colleges in Ontario and even exceeding funding for university students in the province. This spike in financial aid utilization comes in the wake of the Ontario government’s decision to reduce student assistance grants for universities and public colleges earlier this year due to unsustainable OSAP costs.
Data obtained through a freedom-of-information request underscores that the majority of recent growth in OSAP recipients has been concentrated within career colleges, with minimal growth observed among university and college students. Career Colleges Ontario, the sector’s advocacy organization, acknowledged concerns regarding a few institutions but emphasized that instances of irregular behavior are rare among its members.
In response to the escalating situation, the Ministry of Colleges and Universities in Ontario has barred students at five career colleges from accessing OSAP in the upcoming academic year. The decision stemmed from concerns surrounding asynchronous learning programs, which allow students to complete coursework at their own pace. The province raised issues of compromised participation in these programs, prompting the exclusion of certain institutions from OSAP eligibility.
The Academy of Learning, a network of franchise-operated schools that saw a substantial rise in OSAP recipients, attributed the enrollment growth to demographic shifts, particularly among newcomers and individuals seeking career retraining. While the Bay Street location experienced a surge from 996 to 7,435 OSAP recipients between 2021-22 and 2024-25, the Brampton East location witnessed a growth of over 1,300%, challenging the OSAP eligibility suspension through legal channels.
Experts have flagged these extraordinary spikes in OSAP utilization as outliers, emphasizing that such rapid growth is atypical in the post-secondary education landscape. Criticism has been directed at Ontario’s approach, with comparisons drawn to other provinces where financial aid usage at private career colleges is subject to more stringent limitations. The Ministry of Colleges and Universities has pledged additional legislative measures to address the escalating growth and ensure responsible use of public funds for student support.