Higher Education Minister Blade Nzimande told members of Parliament an inquiry into the would investigate business processes and system failures at Nsfas.
Last year, the scheme was allocated over R900 million to pay out to NSFAS-funded students who owed money to their universities.
Workers went on strike on Monday over performance bonuses and claimed that employees were being victimised.
Contract workers said they also wanted to be employed permanently.
By June, 500,000 students had been paid a total of about R9 billion, while just over 28,000 were still waiting for their allowances.
More than 400,000 applications were received from prospective students for the 2019 application cycle.
The National Student Financial Aid Scheme (NSFAS) has come under fire recently after it confirmed it was dealing with a payment backlog from 2017 and early this year.
Higher Education and Training spokesperson Lunga Ngqengelele says NSFAS staff members will be readily available on campuses to assist students.
Higher Education Minister Naledi Pandor has told MPs that the majority of affected students are those studying at TVET colleges.
Higher Education Minister Naledi Pandor said last month financial aid applications will be closed for the 2019 academic year until the backlog for this year and 2017 is cleared.
The Department of Higher Education says applications will not be opened until NSFAS sorts out the payment backlogs from 2017 and 2018.
Officials from the National Student Financial Aid Scheme, Walter Sisulu University and the company that manages the payment of funds are to appear before lawmakers on Wednesday.
The committee says while it accepts the error was not made by Nsfas, the companies it uses to distribute funding should be thoroughly vetted.
The mistake was revealed when a receipt and photos of the woman's spending spree went viral.
It’s unclear when National Student Financial Aid Scheme will approve funding for the students.
The National Student Financial Aid Scheme has also moved to clarify that it does fund children of civil servants.
The Higher Education Dept says some students are making false claims of poverty.
The university also suspended 20 students for allegedly displaying violent behaviour.
