The Ontario government delayed in-person inspections of two major Ontario career colleges for nine months, allowing them to continue collecting millions in provincial student aid despite mounting evidence of irregularities. Court documents reveal these institutions were granted renewed eligibility for the Ontario Student Assistance Program (OSAP) just days before inspections finally commenced in 2025.
This regulatory failure has forced the province into a reactive stance, culminating in a total freeze on OSAP payments for all private career colleges. Launch Len Media views this as a failure of administrative due diligence that has unfairly penalized students while exposing the provincial treasury to significant financial risk.
The Timeline of Regulatory Inaction
The Ministry of Colleges and Universities issued inspection notices to Academy of Learning locations on Bay Street and in Brampton East on Oct. 1, 2024. Despite these notices, in-person inspections did not begin until July and August 2025, according to court records cited by CP24.
A ministry official apologized for the delay in an email to the Brampton East location, attributing the lapse to staff transitions and the implementation of new inspection procedures. This delay occurred even though Career Colleges Ontario had flagged irregularities in OSAP usage at 10 schools, including these two locations, in a letter dated Jan. 15, 2025.
The schools were approved for continued OSAP funding in August 2025, just days before or during the start of the delayed inspections. By the time the ministry issued a failing grade to these institutions, they had already secured another year of government-funded tuition payments.
The Academy of Learning is currently seeking a judicial review of the ministry’s 2026 decision to bar them from OSAP eligibility. The ban, initially set for one year, has since been extended to 2030.
Financial Mechanics and Enrollment Spikes
The financial scale of the OSAP involvement at these specific locations was substantial. In the 2024-25 academic year, successful OSAP applications at the two Academy of Learning locations totaled $173 million in grants alone.
When including a North York branch, the total rose to $219 million. For context, students at all publicly funded colleges across Ontario received a combined $385 million in provincial grants during the same period.
The growth in enrollment at these private institutions was equally dramatic. The Bay Street location saw OSAP student enrollment climb from 996 in 2021-22 to 7,435 in 2024-25, representing a 642 percent increase.
The Brampton East location experienced a similar surge, with enrollment growing by 527 percent over the same period. The schools have argued that this growth reflects program relevance and public confidence rather than systemic risk. Source: Global News.
Allegations of Systematic Irregularities
Inspection reports finalized in September 2025 alleged that third parties were completing coursework on behalf of students at certain Academy of Learning locations. These reports noted that some students were unable to name their school or program during interviews.
The schools have contested these findings in court filings. They suggested that students may have ignored federal verification calls due to fears of scams and that language barriers explained the difficulty in answering interview questions.
The federal government notified the province of these concerns in May 2025, citing evidence of systematic irregularities and unusually rapid course completion. The Academy of Learning maintains that its data interpretation is correct and that rapid completion is a result of their specific delivery model.
The provincial government has since referred these concerns to the Ontario Provincial Police for further investigation. This referral marks a significant escalation from administrative oversight to potential criminal inquiry.
The government still dragged its heels on conducting the investigation that it is obligated to do and then blames students for misusing OSAP grants and punishes the entire sector for its own incompetence.
NDP critic Peggy Sattler
Analysis of Government Policy and Accountability
Launch Len Media argues that the Ontario government’s decision to pause all OSAP payments to private career colleges is a blunt instrument that unfairly punishes compliant institutions. By failing to act on early warnings in 2024, the ministry allowed the situation to deteriorate to a point where a sector-wide freeze became the only perceived solution.
A fair counterpoint is that the government is operating under extreme pressure to protect the integrity of the OSAP system. With $219 million in grants flowing to a small group of private schools, the ministry’s decision to pause funding reflects a necessary move to safeguard taxpayer funds while a broader audit by KPMG is completed.
However, the delay in inspections remains the core issue. Had the ministry conducted its oversight in a timely manner, the need for a total sector-wide freeze might have been avoided. The current approach suggests a reactive policy framework that prioritizes political damage control over consistent regulatory enforcement. Source: The Tribune.
The government’s reliance on a blanket ban suggests a lack of confidence in its own ability to distinguish between high-performing and problematic institutions. This uncertainty creates a volatile environment for students who rely on OSAP to complete their education.
Steps for Affected Students and Institutions
If you are a student currently enrolled in a private career college, you should monitor the Ministry of Colleges and Universities website for updates on the OSAP pause. The government has indicated that the current audit will determine the future of funding for the sector.
Students should also keep copies of all academic records and communication with their institutions. If you face an unexpected loss of funding, contact the financial aid office at your school to discuss alternative payment plans or potential deferrals.
For institutions, the current environment necessitates full transparency. Schools should proactively provide the ministry with requested data and cooperate with the ongoing KPMG audit to demonstrate compliance with provincial standards.
Finally, stakeholders should engage with their local representatives to demand clearer communication regarding the timeline for the OSAP review. The current uncertainty regarding the 2030 ban and the broader funding freeze requires immediate clarity from the Ministry of Colleges and Universities.
Frequently Asked Questions
Why were OSAP payments paused for all private career colleges?
The government paused payments following preliminary audit findings by KPMG that raised serious concerns about potential fraud and the integrity of the student aid program.
Are the Academy of Learning locations still eligible for OSAP?
No, the ministry has barred these locations from OSAP eligibility until 2030, a decision that is currently subject to a judicial review.
What should students do if their funding is cut?
Students should contact their school’s financial aid office to explore payment options and monitor the official Ministry of Colleges and Universities portal for updates on the status of the OSAP review.
