I was under the assumption that there are no fees to be paid for Scottish tudents studying in in Scotland. Is this not the case for Masters courses?

Unfortunately you have to pay fees for most masters courses in Scotland and you won't be eligible for a student loan through SAAS unless you're doing specific subjects (generally teaching courses). However, some universities offer fee waivers for masters students and a limited bursary (at my university it's £2000) if you have a good undergraduate degree.

bunk_medal, what university is that which offers fee waivers? Are there any conditions attached to these fee waivers? I've heard of fee waivers for vocational courses in colleges but these require you to be on the dole for 6 months.