Ontario Introducing New Measures to Strengthen Oversight and Accountability for Private Postsecondary Institutions

The Ontario government announced today that it intends to introduce legislation that, if passed, would strengthen oversight and enforcement for private postsecondary institutions in the OSAP system and provide new tools to protect students and taxpayers. The proposed changes would give the province stronger legislative powers to prevent abuse before it occurs and require transparent, student-focused practices from career colleges. Together, these measures will ensure OSAP supports the students and institutions it was designed to serve while upholding Ontario’s high standards for postsecondary education.

“Ontario’s postsecondary system is intended to prepare students for our province’s in-demand careers of tomorrow and any misuse of this system for personal, predatory gain is entirely unacceptable,” said Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security. “These measures will strengthen OSAP integrity, hold institutions to higher standards and ensure public funding supports high-quality education and better outcomes for students.”

These proposed changes respond to significant and widespread concerns regarding the growing volume of OSAP applications in the private postsecondary sector, which led to the province’s decision to pause OSAP payments associated with private postsecondary institutions and begin an external audit. They also address broader concerns about compliance, accountability and educational quality within parts of the private postsecondary sector.

The proposed measures would, if passed:

• Cap OSAP-funded enrolment growth at private institutions to prevent rapid expansion, aligning with other Canadian jurisdictions like Alberta
• Make predominantly online programs at private postsecondary institutions ineligible for OSAP and require career colleges to maintain a physical campus
• Restrict relationships between career colleges and third-party organizations, such as immigration and recruitment firms, including by banning unrelated businesses on campuses
• Give the province enhanced authority to recover OSAP funding from private institutions by deeming them liable for their students’ loans
• Strengthen requirements for institutions to verify student eligibility, class participation and completion of coursework to retain OSAP eligibility
• Establish new monetary penalties for violations of the Ontario Career Colleges Act, 2005
• Enhance transparency regarding enforcement actions taken against career colleges

These proposed changes are designed to support the government’s objective of ensuring a strong postsecondary system, including private postsecondary institutions, that is accountable, transparent and effective in preparing students for successful, good-paying careers.

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