The SNP government in Holyrood has again failed to fulfil a major election promise to tackle student debt made in the run up to the 2007 Scottish Parliamentary elections.

A consultation paper—published in December—that addresses the Scottish government’s election pledge to replace student loans with a system of grants has been criticised by student representatives for failing to meet the SNP’s manifesto promise.

In 2007, the SNP pledged to replace student loans in Scotland, a system the government describes as “expensive and discredited” with means-tested scheme involving grants and bursaries, effectively raising the level of student income and reducing graduate debt.

However the system proposed in the 15 December 2008 paper, entitled Supporting a Smarter Scotland, falls far short of the promise which formed one of the key pillars of the SNP’s “Drop the Debt” campaign.

The proposals instead consist of three separate options. These include:

• Beginning a transition towards increased provision of grants through an increase in the Young Students' Bursary for those under-25 whose parental income is less than £33,000 p.a.
• Increasing minimum income available for students by topping up loans with grant entitlements.
• Combining above options but limiting scope to only the poorest students.

Ruth Bush, president of Heriot-Watt University Students’ Association said: “Although we are pleased the Scottish Government is consulting on the issue of student support, the proposals put forward fall shockingly short of what is needed for Scottish students.

“The options laid out in the proposal are severely restricted by the government’s announcement it has only £30 million to contribute to implementing them.”

Edinburgh University Students’ Association president, Adam Ramsay told The Journal: “The SNP promised to turn loans into grants. They could have chosen to do this. Instead they have chosen to spend the money elsewhere.

“£30 million may sound like a lot, but last week they spent £17 million on one portrait [the amount contributed by the Scottish Government to the Titian appeal]. This consultation is a very long way of admitting that they aren't going to keep their promises to students.”

In order to fund these policies, the SNP have proposed cutting state support to Scottish students from families whose income totals £60,000 or more. This would mean 17 per cent of Scottish students would receive no income other than that provided by parents or other family members. Additionally, the Scottish Government is considering the refusal of support for those planning to study for a second degree.

Speaking to The Journal, one 20-year-old second year student from the University of Edinburgh said: “When I voted in 2007, I was under the impression that the SNP were going to abolish debt for all graduates, regardless of family background. However, under the new proposals it seems that I’d receive no support at all because of my family background despite the fact that right now I am forced to rack up debts too.”

Fiona Hyslop, the Scottish Secretary for Education and Lifelong Learning, complained that the SNP has been heavily constrained by the UK Treasury, the 2008 funding settlement and the fact that there is not enough cross-parliamentary support for its proposals in Holyrood.

She said: “We have to recognise that there are a number of restrictions, outside this Government’s control, which may prevent us fully delivering on all of our commitments.”

In the run up to the 2007 election, the SNP had a three-tiered manifesto promise to tackle student debt. Firstly, they committed themselves to abolishing the graduate endowment, which they achieved in June 2007.

However, the other two tiers, which were both more ambitious and costly, have been significantly watered down. In addition to the replacement of student loans with grants, the SNP initially pledged to service existing graduate debt. In November 2007, this policy was among the first to be dropped as the new administration became starkly aware that it could not afford to keep its promises.