However, the budget also proposes large cuts to colleges from 2012/13.
Robin Parker, President of NUS Scotland, said: "At the last election the Scottish Government committed to increase student support, protect places at college and university, and to rule out tuition fees.
"This budget confirms that the Scottish Government have listened to students in Scotland, with proposals for a £7000 minimum income for the poorest students, the protection of the EMA for young students and pupils, and the confirmation of plans to keep education free of tuition fees and to increase funds for universities to match funding with universities in England.
"Taken together these proposals are a major step in right direction towards making access to education in Scotland fairer.
"This progress is very welcome news and testament to the hard work and campaigning by thousands of students and students' associations across Scotland in the run-up to the last election.
"We will now work closely with the Scottish Government on the detail of these proposals, particularly on student support, to ensure that education is genuinely open to all with the talent, regardless of your background.
"However, we are very worried by the proposed cuts to colleges over the coming years, and particularly next year.
"Colleges serve some of the most deprived communities in Scotland, offering an educational lifeline and local access to education to some of the most excluded in our society.
"College mergers may save money over time, and we will look at them on a case by case basis, however it's not at all clear that money will be saved in the short term.
"The Scottish Government is proposing huge cuts to colleges. They must make sure that no matter what, the number of places at college is at least protected and that quality is maintained.
"We always knew that this was going to be a difficult settlement and we are delighted at some of the progress the Scottish Government have been able to achieve despite this.
"However, for colleges, we are very concerned that further cuts to spending may come before any savings have been made, threatening the quality on offer to college students in Scotland."