Milkround News, 17 December 2008
Scottish students could see their loans replaced by grants as the government considers options to reduce student debt.

The BBC reports the Scottish National Party is looking at ways to make money matters easier on students.

Together with replacing loans with grants, it is also looking at topping up existing loans with grants and reducing debts for families on lower incomes.

In recent moves the government have already binned the graduate endowment fee and introduced another £38 million pounds worth of grants.

Adding new grants to existing loans would give students from low income families nearly £500 extra a year.

If the SNP elect to reduce the debt of those from lower earning families, existing loans of £600 would be replaced with grants of £1,200.

Education secretary Fiona Hyslop told the BBC: "Among the proposals are further plans to move from loans to grants - loans which we believe are wrong for students and wrong for Scotland."