The money, announced Wednesday by the Ministry of Training, Colleges and Universities, is in addition to a $3 million fund already set up to provide eligible students with funding towards training completion, or full or partial refunds when career colleges go bust the way Everest did.
The ministry says the money will "ensure that every student has the option to complete their training at a nearby institution without having to pay additional tuition" or provide rebates for tuition money already spent, for those who choose to not complete their studies somewhere else.
"We're pleased to see that students will be able to receive the support needed to finish their training," said Serge Buy, CEO of National Association of Career Colleges, a national non-profit group that represents 500 colleges and 160,000 students across the country.
Everest College was abruptly shuttered last month when the superintendent of private career colleges, the independent regulator that governs schools like Everest and others in the province, said it has suspended the chain's licence to operate in Ontario.
The move has left thousands of students scrambling to finish their schooling, and caused headaches for graduates who now face bleaker employment prospects from being associated with the name.
The government says they will limit student debt for those students, even the ones who choose to not apply for a refund. "OSAP debt will be limited to $7,300 for a two term academic year, or $10,950 for three terms, regardless of how much was borrowed," the ministry said in a release.
The government will also ensure that the loans of OSAP students who complete their training at another institution will not enter repayment until six months after they have completed training at the alternate institution.
The province says anyone wishing to apply for the program should complete an application form, which can be found here.