Students and New Business

This made me smile :

http://news.bbc.co.uk/1/hi/business/8096604.stm

Students using their capacity to get a cheap loan to fund the start up of their businesses. Whilst the abilities of students to get everything that they can for nothing have been long known, the idea they might turn that ability towards commerce and enterprise is a new twist in the tale. There are some questions about this thought that come to mind ...

Does the idea that a student (undergrad) can get access to money on a less than commercial rate or basis pervert the market for those people who cannot access money under the same conditions?

If it does, is this now an unrealistic way for students to start businesses based on the impact it has on the rest of the entreprenurial environment.

If the money used by the student comes in the form of a grant rather than a loan, is this then not an illegal use of public funding?

I'm not sure what the answers are to these questions. Students aiming to be in business are to be applauded, supported and encouraged, but I have a feeling that this kind of thing is not the way to do it.