# Ontario Private Colleges Cut Staff Amidst OSAP Funding Freeze Financial instability mounts as provincial student aid disbursements remain halted for private institutions. - **Source:** [The Globe and Mail – Canada](https://www.theglobeandmail.com/canada) - **Published:** 2026-11-12 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/6cb9f643-75bb-4c72-9097-238ed66518dc ## Widespread Staff Layoffs Three Ontario private career colleges have initiated significant staff layoffs due to a provincial funding freeze. Anderson College cut over 100 positions, while Computek College and the Academy of Applied Pharmaceutical Sciences reduced staff by 25 and 10 employees respectively. These institutions are struggling to maintain operations without essential student tuition revenue. ## OSAP Disbursement Halt The Ontario government implemented a blanket freeze on Ontario Student Assistance Program (OSAP) disbursements to private career colleges. This decision followed a preliminary audit that uncovered serious integrity concerns regarding student aid. The province has referred some findings to the Ontario Provincial Police for further investigation into potential fraudulent activities. ## Audit Reveals Irregularities Provincial inspectors reported suspicious activities, including asynchronous courses completed in mere days and exams finished in under five minutes. Many applications originated from a small number of IP addresses, often located outside North America. These findings prompted the government to engage KPMG for a wider audit of the sector. ## Operational Financial Crisis Private colleges, which rely heavily on OSAP for tuition, are facing severe liquidity issues. Laleh Bighash, president of the Academy of Applied Pharmaceutical Sciences, stated the school could only survive for a few weeks. Other institutions like the Harris Institute have already closed, while Trillium College suspended classes across all five campuses. ## Impact on Students The freeze disproportionately affects low-income students, including new Canadians and working parents who depend on government loans. Anderson College recently paused classes for approximately 300 newly enrolled students. These learners, often training for essential roles like personal support workers, now face significant uncertainty regarding their education and future career prospects. ## Supply Chain Ripple Effects The financial strain extends to third-party suppliers serving the private college sector. Campus Bookstore owner Eddy Della Mora reported a 96 percent decline in sales during October compared to last year. Suppliers are currently holding inventory, such as textbooks and uniforms, that colleges can no longer afford to purchase due to revenue losses. ## Government Reform Efforts Premier Doug Ford stated his government is working to reform OSAP rules to isolate bad actors while supporting legitimate institutions. Minister of Colleges and Universities Nolan Quinn is expected to provide an update on the program this Thursday. The government is also exploring third-party, low-interest loan options to assist affected students. ## Future Sector Outlook Career Colleges Ontario, representing 280 campuses, is gathering data on the full impact of the freeze. As the investigation continues, the risk of further program suspensions and institutional closures remains high. The outcome of the upcoming government announcement will determine whether these colleges can stabilize their operations and resume regular academic activities. ## Sources covering this story - https://www.theglobeandmail.com/canada/article-three-ontario-private-colleges-lay-off-staff-osap-pause/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._