This comes after the board of NSFAS decided to give CEO Andile Nongogo leave of absence after allegations made against him while he was at the helm of the Services Sector Education and Training Authority (Sseta).

The allegations relate to his work with the Sseta and how that may relate to unacceptable conduct in the awarding of bids at NSFAS.

Nzimande’s spokesperson, Ishmael Mnisi, said in a statement on Wednesday night that the minister had noted the board’s decision to place Nongogo on leave of absence while investigating allegations surrounding the appointment of service providers to manage the direct payment solution on behalf of NSFAS.

The minister also emphasised that the direct payment solution is in line with the student-centred model which NSFAS adopted," Mnisi added.

Meanwhile, On Wednesday, students from Stellenbosch University and the University of the Western Cape marched to parliament in Cape Town demanding the system be scrapped.

Stellenbosch SRC's vice chairperson, William Sezoe, revealed that students were very unhappy about the third party company that had been appointed to pay out allowances to students.

"As students, we are unhappy that the companies being used for the paying out of allowances are not registered and have no experience in dealing with students of such a magnitude who rely on the funds from NSFAS to complete our studies," said Sezoe