Local career colleges weigh options as province plans to increase OSAP limits

Career colleges in Ontario could soon be subject to limits on the growth of students funded by financial aid, under legislation to be introduced Monday.

Still, there is no word on financial help for the students left in limbo during the government’s pause on the Ontario Student Assistance Program, and one local school says without the money, students may have to interrupt their education.

“Next week, our government will introduce legislation that will strengthen our OSAP system and increase oversight, accountability and compliance within the career college sector,” said Colleges and Universities Minister Nolan Quinn.

Quinn said Thursday the legislation would also limit OSAP funding to in-person and hybrid programs at those institutions, require them to have a physical location and prohibit them from operating unrelated businesses on campus.

“With these measures, we are restoring our private system to one where good institutions can build our workforce, where legitimate students can pursue meaningful careers and where those who abuse the system will face the consequences,” he said.

The response from the opposition was swift.

“What we saw this morning is the government is intent on putting forth what I would say is a ‘cover your ass’ bill,” says interim Liberal leader John Fraser. “The toothpaste is already out of the tube.”

NDP MPP Peggy Sattler also criticized the government’s handling of the file.

“We need to see the government fire this minister, restore OSAP and provide a very clear timeline for career college students whose lives have been upended because of the promises that they were made for student financial assistance,” Sattler says.

Quinn said his government is working with banks to secure low-interest loans for students who have had their OSAP paused during the audit of career colleges, but nothing has been finalized.

“We’re still working with the banks. We have some progress, but not progress enough to be announced at the podium today,” he said. “The premier and I have been very clear. We understand the urgency, we understand the legitimate students that are caught up in this”

The chief operating officer of the Southern Ontario Dental College in Ancaster says the impacts are immense, noting students may have to pause their education and schools may have to shut down if OSAP isn’t restored soon.

“If 90 per cent of our students can’t pay, we only have so many resources to operate with,” said Alysse Estrabillo. “We’re either going to run out of money or make really big cuts, whether that be in staffing, in the size of our classrooms, asking students to pause their studies, so many different options to look at.”

The school is even looking into private lenders that may be able to help its students pay for school.

READ MORE: Ontario to cap OSAP growth at career colleges following massive increases