South African student blows thousands after $1.3 million wrongly deposited in her bank account

The student reportedly spent the money on clothes, a party and smartphone. Photo / 123RF

A South African student has blown tens of thousands of dollars after $1.3 million wrongly deposited in her bank account.

AFP reports that the student spent the money on clothes, a party and a new smartphone.

The Walter Sisulu University, in the Eastern Cape region, said the whopping error was made in June during monthly disbursement of state-issued student loans, when 14 million rand (about $1.35m) was accidentally transferred instead of a R1400 ($135) monthly food allowance.

A university spokesperson told the AFP the error was reported by another student.

"The error was only discovered on Monday after the matter was reported to us by another student," university spokeswoman Yonela Tukwayo told AFP.

The student, who cannot be named, reportedly spent nearly R800,000 rand ($61,250) of the money.

"She is liable for the amount that she has already spent, as part of our agreement with students who take out loans," Tukwayo said.

The university is trying to identify how the administration error occurred and has since taken the remaining balance from the student's account.