The Cyril Ramaphosa Education Trust (CRET) has also withdrawn bursary support to one of the University of Pretoria students, while Blue Bulls rugby axed the other one who was on their cheerleader squad.
The Blue Bulls Company said that although the cheerleaders were managed by an external consultant, it would not condone any form of racial abuse.
The video went viral after it was shared on a Whatsapp group.
The university said the two will now face a disciplinary hearing.
In the footage, one of the students, who appears to be drunk, uses the K-word to accuse a black person of stealing her phone.
“A f***ing K***** stole my phone,” she says.
The two students then use the K-word and other expletives several times.
Tuks expressed shock at the incident, saying the institution “strongly condemns the use of such derogatory and racist language”.
University of Pretoria spokesperson Rikus Deport said the length of their suspension would depend on how quickly they can resume the disciplinary hearing.
Meanwhile, CRET posted a statement on its social media platforms condemning the “abhorrent behaviour” displayed in the video and confirmed that it had withdrawn the student’s bursary with immediate effect.
“The CRET bursary programme has prided itself on its non-racial, non-discriminatory programme that supports disadvantaged students across all races,” the statement said.