PilotPieces,
Yeh you need to be Scottish.
To be detail nit-picker, one could be non-UK EU national to get the same student loan (or, in case of Scotland, 'endowment' fees upon graduation). The only thing that makes a difference is length of time in the UK/Scotland for other student funding, ie maintenance loans and grants. School bursaries are another thing, not dependent on time spent in the UK.
Also, strictly speaking, Welsh, N Irish or English could qualify for the same conditions as Scottish folks studying in Scotland as long as they are 'ordinarily resident' in Scotland. Couple years should do.
BTW, the phrase 'first flying job' and then asking for FO positions, that's seriously jet jockey wannabeism, IMO.