OSAP Funding Freeze Leaves Ontario Health-Care Sectors Facing Staff Shortages

a stethoscope and a folded high-visibility paramedic jacket resting on a wooden desk next to a stack of blank financial forms, soft daylight coming through a fr

AI-generated illustration; not a photograph of the reported event.

  • calendar_today October 29, 2026

OSAP Funding Freeze Disrupts Private College Students

A freeze on Ontario Student Assistance Program (OSAP) payments at private colleges has led many students to suspend their education, raising alarms about looming staff shortages in vital health-care sectors.

Widespread Impact on Health Care, Law, and Technology Fields

Career colleges across Ontario, which provide training in health care, technology, law, justice, and business, have seen significant disruption. Colleges and Universities Minister Nolan Quinn instituted the OSAP freeze for all private post-secondary institutions earlier this month, after preliminary KPMG audit findings indicated “significant concerns.”

The immediate effect is being felt by students relying on financial aid to cover living expenses during their studies. Ashley Cole, a paramedic student at CTS Canadian Career College in North Bay, noted she and 116 fellow students received only the first half of their funding and are uncertain about their future. Many have relocated and made personal sacrifices to pursue their education, only to find themselves in financial limbo.

Moriah Ferron, a Sudbury mother of four training to be a paralegal, has struggled to pay utility bills. Aaron Madgett, recently laid off from Algoma Steel and enrolled in a paramedic program in Sault Ste. Marie, now relies on the food bank to support his family.

Systemic Issues Cited by Ministry

The OSAP funding freeze, initially targeting six institutions, was expanded after the ministry cited evidence of systemic issues. Bianca Giacoboni, spokesperson for Minister Quinn, stated that officials could not guarantee the problems were isolated, resulting in a pause affecting all private colleges to protect taxpayer money and “hold bad actors accountable.”

It remains unclear when or if funding will resume. The province is working on a low-interest, third-party loan option for students, but this support is not expected before next year.

Melina Luther, a soon-to-be paramedic program graduate in Wawa, worries about her family’s plans and financial future due to the uncertainty.

Concerns Over Health Care Staffing

Student dropouts and delays risk exacerbating vacancies in crucial roles such as personal support workers (PSWs) and paramedics. Miranda Romanovicz, executive director of the Ontario Personal Support Workers Association, said private career colleges graduate 86 percent of the province's PSWs.

Romanovicz warned, “I don’t see how we’re going to meet the need of our most vulnerable in this province if we’re not graduating them from the largest graduator of PSWs.” She emphasized that private colleges offer greater flexibility, shorter courses, and more frequent start dates than public institutions, making them accessible to adults balancing other responsibilities.

She also noted that the introduction of new long-term care homes has increased demand for PSWs, placing added strain on a sector already struggling with shortages. Even if student funding issues are resolved early next year, Romanovicz doubts the sector can recover quickly, anticipating a drop in the number of PSW graduates.

Paramedic Services Face Recruitment Challenges

For paramedic services in northern Ontario, staff shortages are already a persistent concern. Don Symons, a paramedic and union president for a region spanning 45,000 square kilometres—including Manitoulin Island, the north shore, and extending to Foleyet—reported that current staffing is below levels from seven years ago, with full-time and part-time paramedics totaling 132. Shift coverage continues to be a struggle as many leave the field due to housing shortages or pursue higher wages elsewhere.

Symons highlighted the importance of private colleges in paramedic training, noting that although hundreds enroll in northern Ontario programs, only a fraction—about 135 out of an estimated 600 students—actually graduate. The stress and demands of the profession already result in high attrition, and any further decrease in graduates due to OSAP payment issues risks worsening the crisis.

Uncertain Path Forward for Health Care Education

Officials have not provided a timeline for resuming OSAP payments. The Ministry of Colleges, Universities, Research Excellence and Security noted ongoing grant support for PSW education at public colleges but did not confirm support for private institutions. As the sector awaits solutions, concerns about health care staffing and reliable training pathways for Ontario health workers continue to mount.

Source: cbc.ca.