From the next academic year, over two-thirds of students in Scotland will receive increased funding from the government, announced the ministers last week.

The SNP Government said in a statement that a £30 million package has been sanctioned to improve student funding during the recession.

This will go towards raising the maximum limit of the means-tested student loan, and also provide new loans and grants for independent students and those with dependents.

The government estimates that nearly 75,000 students, who make up 68% of Scotland’s student population, are set to benefit from the proposals.

From September 2010 the Scottish students can close the loan gap with students in England as the former being able to borrow up to £4,952, an increase of £442.

In addition, an extra £2 million will go to students responsible for childcare. A new grant will also be set up for around 14,000 students who receive no parental funding.

The government desires to increase grants for 40,000 of the poorest students in Scotland.

The announcement comes after an NUS report, 'Overstretched and Overdrawn’, claimed that more than 50% of students in Scotland are resorting to high-cost commercial debt, mainly credit cards.

The report also said that over 70% students are regularly working over the recommended ten hours a week.