Ontario plans to cap growth in the number of students receiving financial aid at career colleges, part of a package of proposed restrictions following a sharp increase in provincial grants and an ongoing audit of the sector.

Colleges and Universities Minister Nolan Quinn said legislation coming Monday would include the cap, though its size has not yet been defined, The Canadian Press reported in a story published by CityNews.

The proposed measures would also restrict Ontario Student Assistance Program funding at career colleges to in-person and hybrid programs. Institutions would have to maintain a physical location and would be prohibited from running unrelated businesses on campus.

Quinn has said an ongoing KPMG audit raised concerns about career colleges sharing locations with immigration and recruitment firms. The sector’s rapid growth also prompted the government to call in police, according to the report.

“These measures will strengthen OSAP integrity, hold institutions to higher standards and ensure public funding supports high-quality education and better outcomes for students,” Quinn said in a Thursday statement.

Provincial OSAP grants to career colleges nearly doubled between 2023-24 and 2024-25, reaching about $1 billion in the latter year. Data obtained by The Canadian Press through a freedom-of-information request showed that activity at a small number of colleges largely drove that increase.

The ministry alleges some of those schools could not verify that students were attending classes or completing their own coursework. The schools deny the allegations.

While the audit continues, Quinn has paused OSAP payments to all private post-secondary institutions. The Canadian Press reported that some students have dropped out and some colleges are considering closing.

Quinn has said the government is working to secure low-interest bank loans for students until payments resume in the new year, but has not provided a timeline for arranging that support.

Colleges and students are urging the province to target wrongdoing without penalizing those following the rules. Premier Doug Ford has said KPMG auditors have been directed to clear low-risk schools first.

Reporting: Allison Jones, The Canadian Press, via CityNews.

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