COLLEGES are running out of support funds for students in Scotland, even before cuts of £11 million are imposed, new research shows.

NUS Scotland found that half of colleges do not have sufficient funds to meet demand for financial support at a time when there has been a rise of 8800 Scots aged between 18 and 24 out of work.

Moreover, a third of colleges have spent all their allocated bursary money, according to the study by the students' union.

Earlier this month, the Scottish Government announced an £11m cut in support funding to colleges, reducing the current budget of approximately £96m to £84m from August.

Some 50,000 students currently receive bursaries and there are fears the cut will increase drop-out rates and discourage those from poorer backgrounds.

Recent research commissioned by Scotland's Colleges, which represents college principals, found that debt is the single biggest concern of college students.

The SNP's manifesto promised to protect the student support budget for the term of this parliament, with every party candidate making a pledge in the issue.

The SNP Government's inaugural minister for Children and Young People, Angela Constance, said – when she was Skills Minister – last February: "I can confirm we will guarantee the additional funding for bursaries, not just for next year, but for the full four-year parliament."

The Scottish Funding Council's budget for bursaries, childcare and discretionary funding was put at £95.6 million for 2011-12, a 14% increase on the previous year.

The Scottish students' union says ministers are now reneging on their pledge for this parliament by reversing the increase.

Robin Parker, President of NUS Scotland, said: "These figures are incredibly worrying as they show that even the current budget is not enough to meet demand from the poorest students who are hoping to go to college.

"This year we've relied on college reserves but next year, given the cuts institutions are also facing, we won't be able to do that.

"The SNP's manifesto was clearly right in May to promise to protect this budget throughout the parliament, but they are now absolutely wrong to be proposing an £11m cut."

He added: "At a time of high unemployment, and youth unemployment in particular, this drastic cut to student support could price people out of college, and force them on to benefits, undermining the Government's own efforts to tackle youth unemployment in Scotland."

John Spencer, convener of Scotland's Colleges, said colleges frequently used their own funds to help ensure demand for bursaries could be met.

"Colleges support the poorest and most disadvantaged young people in Scotland, and it's important all efforts are made to protect those learners," he said.

"No student should face having to drop out of their studies because of bursary money running out."

However, a Scottish Government spokesman insisted ministers were maintaining student numbers and college student support.

"The Cabinet Secretary made clear in his letter to colleges that delivery is based on published Scottish Funding Council baselines for last year. There is no scope for misinterpretation."

The Freedom of Information request to colleges by NUS Scotland, which 28 out of 40 institutions answered, found that 14 had overspent on their student support funds last year, with a further eight spending the full amount.