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Students attending several private career colleges in Ontario are facing a major financial setback after the provincial government removed their eligibility for student assistance loans through the Ontario Student Assistance Program (OSAP). The decision affects students at five private career college locations and comes amid a broader government review of post-secondary funding and student financial aid policies.
The Ministry of Colleges, Universities, Research Excellence and Security announced that students enrolled at four Academy of Learning career college locations and Citi College of Canadian Careers will no longer qualify for OSAP loans for the upcoming academic year. The move follows concerns raised by provincial officials regarding certain course enrollment practices and the way some programs are delivered and monitored.
The decision has created uncertainty for current and future students who depend on government financial support to pay tuition and continue their education. Many career college students rely heavily on OSAP loans because private institutions generally do not receive the same public funding support as Ontario’s universities and publicly funded colleges.
The government’s decision comes at a time when Ontario is making significant changes to its student financial assistance system, including reductions in grants available to many post-secondary students across the province.
Ontario’s OSAP Changes and the Government’s Financial Aid Overhaul
Province Cites Sustainability Concerns Behind Student Aid Cuts
Earlier in the year, Premier Doug Ford’s government announced a major post-secondary funding plan that included increased financial support for colleges and universities while reducing spending on student grants.
The government committed to increasing funding for post-secondary institutions by $6.4 billion over four years. At the same time, it announced changes to OSAP, arguing that the existing financial aid structure was no longer sustainable.
Government officials stated that the changes were necessary to address what they described as the growing cost of the student assistance program. The province said the reforms were designed to create a more balanced approach to supporting students while maintaining funding for post-secondary institutions.
However, previous government data revealed that much of the recent increase in OSAP grant spending was connected to students attending private career colleges.
According to information obtained by The Canadian Press through a freedom-of-information request, career college students accounted for nearly all of the recent growth in OSAP grants. This data increased scrutiny of how student aid funds were being distributed and whether additional oversight was needed.
Career College Students Affected by Broader OSAP Restrictions
The removal of loan eligibility for students at the affected institutions adds another layer of difficulty for career college students already impacted by changes to OSAP grants.
Unlike students at publicly funded colleges and universities, many private career college students depend on financial assistance to access training programs that prepare them for employment in fields such as healthcare, business, technology, and skilled occupations.
The loss of OSAP access may make it more difficult for some students to enroll, continue their studies, or complete programs they have already started.
Five Private Career College Locations Lose Access to Student Assistance Loans
Academy of Learning Campuses Among Institutions Affected
The Ministry of Colleges, Universities, Research Excellence and Security has suspended OSAP loan eligibility for students attending four Academy of Learning career college locations. These campuses operate as franchise locations and include facilities in Brampton, north Toronto, and downtown Toronto.
Students at Citi College of Canadian Careers are also affected by the decision.
The federal government had previously warned students at these institutions, along with students at another career college in New Brunswick, that federal student aid eligibility was under review. The notice was later removed from the Employment and Social Development Canada website.
According to a federal government spokesperson, Ontario’s decision made additional federal action unnecessary because the province had already removed student assistance eligibility.
Neither government has publicly released detailed allegations against the institutions involved. However, legal documents filed by three of the affected schools provide insight into the concerns raised by provincial officials.
Concerns Focus on Online Learning and Student Participation Monitoring
Government Raises Questions About Asynchronous Education Programs
A legal challenge filed by three Academy of Learning locations suggests that the government’s concerns relate largely to online education programs, particularly courses delivered through asynchronous learning.
Asynchronous learning allows students to complete coursework independently without attending live classes at scheduled times. The format has become increasingly common across the education sector because it provides flexibility for working adults, newcomers to Canada, parents, and students with other responsibilities.
According to the schools’ court filing, provincial officials raised concerns about several areas, including:
High-risk admissions practices
Questions about participation in asynchronous programs
Insufficient attendance tracking systems
Concerns about monitoring academic progress
The schools stated that the central issue involved whether the individuals registered in programs were always the same people completing coursework and assessments.
The institutions argue that these concerns do not reflect the reality of their student populations, many of whom choose flexible online education because traditional classroom schedules are difficult to manage.
Career Colleges Defend Flexible Learning Models
The affected Academy of Learning campuses argue that flexible online education models are specifically designed to serve students who require alternative learning arrangements.
In their court application, the colleges stated that their programs were developed for students including working adults, newcomers to Canada, individuals with family responsibilities, and others who need greater flexibility.
The schools argue that asynchronous education is widely used throughout the post-secondary sector and that concerns about online participation should not automatically result in the loss of student financial aid access.
They maintain that they have implemented monitoring systems and corrective measures intended to address any concerns raised by regulators.
Private Career Colleges Challenge Ontario’s Decision in Court
Schools Seek Judicial Review of OSAP Eligibility Decision
Three Academy of Learning locations have launched a legal challenge seeking to overturn the province’s decision.
The colleges argue that the minister has authority to remove OSAP eligibility during an academic year but does not have the legal power to prevent eligibility for a future academic year before an institution has even submitted its application for approval.
The schools say that government inspections identified problems but that they responded by submitting corrective action plans within the required timelines.
According to court documents, one campus received an unsuccessful rating in a September 2025 OSAP inspection report. Similar reports were issued for two other campuses in March.
The institutions argue that they worked with provincial officials to address concerns and that removing OSAP eligibility unfairly harms students who rely on financial assistance.
Citi College Says It Will Continue Supporting Students
Citi College of Canadian Careers has also responded to the government’s decision.
Director Jaidev Chakravarty said the college has trained thousands of students over several decades and remains committed to supporting students and meeting workforce needs.
The college stated that it has been involved in discussions with the province and would consider legal options to ensure students continue to have access to its training programs.
Citi College did not provide further details about OSAP-related matters, citing advice from legal counsel.
Government Defends Decision as Protection for Students and Taxpayers
Province Says Institutions Must Follow Compliance Requirements
The Ontario government has defended its decision, stating that strict oversight is necessary to maintain confidence in the student financial assistance system.
A spokesperson for Colleges and Universities Minister Nolan Quinn said the province has established a strong compliance framework to ensure institutions receiving OSAP support follow regulations.
The ministry said institutions that fail to meet requirements will face consequences.
The government emphasized that protecting students and taxpayers is a priority and that enforcement measures are necessary when schools do not meet expected standards.
Officials have not provided further public details about the specific findings that led to the removal of OSAP eligibility.
Career College Industry Calls for Stronger Oversight and Fair Enforcement
Sector Group Says Compliance Protects Students and Reputable Schools
Career Colleges Ontario said most private career colleges follow government requirements and are committed to providing quality education.
The organization acknowledged that institutions failing to meet required standards can damage public trust and negatively affect students.
However, it also stressed that many career colleges operate responsibly and play an important role in Ontario’s workforce development system.
Career colleges often provide shorter, career-focused training programs designed to help students enter or transition into employment. Employers in many industries rely on graduates from these programs to fill workforce shortages.
The organization said maintaining the integrity of student financial aid requires clear rules, consistent oversight, and effective enforcement.
Impact on Ontario Students and the Future of Career College Funding
Students Face Uncertainty Over Education Costs and Program Completion
For affected students, the immediate concern is how they will finance their education.
Many students choose private career colleges because of flexible scheduling, specialized programs, and faster pathways into employment. Losing access to OSAP loans could force some students to delay their studies, seek alternative financing, or reconsider their educational plans.
Students already enrolled in affected programs may also face uncertainty about completing their training without financial assistance.
The situation highlights the growing debate over how governments should balance financial oversight with maintaining access to education.
Future Reviews Could Reshape Private College Regulations
The dispute between Ontario and the affected colleges reflects broader questions about regulation in the private career college sector.
As online learning continues to expand, governments and education providers are facing new challenges in verifying student participation, maintaining academic standards, and ensuring public funding is used appropriately.
The outcome of the legal challenge could influence how Ontario regulates online career education programs and determines eligibility for future student assistance.
For now, students at the affected institutions remain caught between government efforts to strengthen oversight and colleges arguing that their programs serve important educational needs.