Disappointed

Two years ago my brother was supposed to graduate and get his qualifications, we were told that the bursary did not pay (please note that the institution offered the bursary). We have been running up and down for two years trying to get his qualifications only to be met with "there is nothing we can do as the bursary has not paid" we offered to pay out of pocket but were told that it's not allowed.

Gauteng city college please explain why this is right, how is this right?