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A Toronto-area private career college has laid off staff for the first time in its 35-year history after the Ontario government suspended student loan funding across the private career college sector. Computek College, which operates campuses in Toronto, Ajax and Markham, says the funding freeze has devastated its finances and disrupted the lives of its students.
Funding Freeze Forces Historic Layoffs at Computek College
“Our revenues and income completely stopped all of a sudden, which resulted in layoffs. After 35 years, we did layoffs for the first time Monday,” said Muraly Srinarayanathas, chairman of Computek College. The school primarily offers training in healthcare, business and technology.
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Computek is one of hundreds of private career colleges affected by the Ontario Student Assistance Program (OSAP) ban. The Ford government first suspended OSAP eligibility for students at five private career colleges in July, citing concerns about enrollment practices and unusually high loan application volumes. By October, the government extended the ban to all 242 private career colleges as investigations into alleged fraud widened.
Srinarayanathas says the blanket suspension is “confusing” for colleges like Computek, which undergoes annual audits and regular inspections with no issues flagged. He has asked the Ministry to prioritize Computek in its inspection process so the school can resume normal operations.
Government Moves to Strengthen Oversight of Private Colleges
On Thursday, Colleges and Universities Minister Nolan Quinn announced that new legislation would be introduced Monday. The legislation aims to increase oversight and accountability across the private career college sector.
“What we have found here are not minor administrative concerns, but rather co-ordinated, sophisticated efforts to take advantage of students and taxpayers for personal gain,” Quinn said at a press conference. He added that the scale of the problem is far greater than initially suspected.
Srinarayanathas says Computek fully supports efforts to protect the integrity of the sector. However, he argues that the broad funding suspension must be balanced against the real harm it causes to students and legitimate institutions.
Students Face Financial Crisis as OSAP Payments Halt
Many students at Computek rely on OSAP not only for tuition but also for living expenses. Since the ban took effect, students have struggled to cover rent, food and childcare costs. “Some of our students have been on welfare, have taken OSAP, trusting that OSAP would provide their tuition support and also their living expenses,” Srinarayanathas said. He described the current financial situation for students as “extremely dire.”
Most of Computek’s students are between 35 and 45 years old. Many are newly arrived Canadian citizens or permanent residents seeking to build careers and contribute to Ontario’s workforce. Srinarayanathas noted that private career colleges play a critical role in training dental assistants, pharmaceutical technicians and personal support workers.
“Being able to train and get into those higher paying opportunities is essential for everyone across Ontario and across Canada,” he said. “So it is very challenging to be in this situation.”
