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Poorest students face £350m cut in grants
Documents reveal science budget also under threat as NUS president attacks proposals as 'outrageous'
Up to 500,00 students could be affected by the cuts. Photograph: Chris Ison/PA
The Department for Business (BIS) is considering cutting £350m of grants to the UK's poorest students and slashing £215m from ringfenced science funding in order to plug a £1.4bn hole in its finances, the Guardian has learned.
More than 500,000 students from lower income backgrounds would be affected by plans drawn up by the higher education minister, David Willetts, which are being discussed by the business secretary, Vince Cable, and the deputy prime minister, Nick Clegg.
According to internal departmental documents seen by the Guardian the cuts would take effect after the next election in 2015 and would involve converting £1,000 a year from the maximum £3,250 award received by each eligible student into repayable student loans.
Ministers have been advised that converting £350m - around a quarter of the student grant budget - to loans could create problems for participation in higher education of those from the lowest income households. Students whose parents earn between £35,000 and £42,600would likely lose all or most of their access to student grants under the plans.