Ford government faces new legal challenge over OSAP freeze

Citi College is asking the Ontario Superior Court to overturn its student aid funding ban

Published Oct 15, 2026  •  Last updated 5 minutes ago  •  2 minute read

Queen's Park in Toronto Photo by CYNTHIA MCLEOD /Toronto Sun

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OTTAWA — The Doug Ford government’s crackdown on private career colleges is facing another legal challenge.

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A notice of application filed by Citi College of Canadian Careers in the Ontario Superior Court of Justice is asking the court to overturn the government’s decision to revoke the school’s eligibility for OSAP funding. The Toronto Sun viewed a copy of the application.

“The Minister’s reasons for the Decision are unintelligible, internally incoherent, and fail to disclose a rational chain of analysis connecting the evidence before the Ministry to the conclusions reached,” an excerpt from the application reads.

“The reasons fail to explain how the decision accounted for the ongoing compliance monitoring and corrective action plan processes previously implemented by the Ministry, with which Citi College remains in compliance.”

Several career colleges targeted by the Ministry have launched their own court battles, arguing the sudden OSAP bans were unfair and relied on retroactive standards.

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Crackdowns began late last year

Amid surging provincial student aid grants and concerns over rapid enrollment growth, Queen’s Park launched targeted inspections and froze OSAP eligibility for select private career colleges earlier this month.

Prompted by concerns over academic fraud and ties to immigration firms, Ontario opted to expand audits and refer findings to the OPP.

The Ministry of Colleges and Universities launched targeted compliance inspections of private career colleges late last year.

In May, Colleges and Universities Minister Nolan Quinn issued an order blocking an initial group of schools from administering OSAP for the 2026-27 school year.

The province hired forensic auditors from KPMG in August to investigate the problem. Preliminary findings prompted contact with the OPP and further freezes on OSAP disbursement at all private career colleges.

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Decision could close school, operators fear

The application also argues the Ministry failed to explain how Citi College could continue meeting its requirements after the decision took effect.

“Citi College will suffer irreparable harm if the decision is not stayed,” the application states, warning that losing access to OSAP funding threatens the school’s continued existence, the jobs of employees and the studies of students already enrolled.

“The loss of provincial OSAP designation has already rendered Citi College ineligible for federal student financial assistance, and that federal assistance will not be reviewed for resumption unless and until Citi College’s provincial designation status returns to active status, further entrenching the harm described above.”

In a statement from Quinn’s office, spokesperson Bianca Giacoboni said six schools had been removed from OSAP administration.

“As part of the province’s work to monitor compliance at private career colleges, corrective action was taken to issue notices of non-renewal to six campuses, including Citi College of Canadian Careers who have since had their OSAP eligibility suspended,” she said.

[email protected]
X: @bryanpassifiume

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