Student finance help students with loans and this will be paid back to the government. Maintenance loans for students are counted as unearned income, every £1 in loan, £1 is deducted from UC payment. However, if someone works and has earned income then they are deducted 63p from every £1 earned.
How is this fair when people are trying to better their lives, by going to study at university to eventually be able to move away from the benefit system. UC is penalising students, especially single mothers that are trying to get an education. Student loans need to be repaid but as an employee, all money earned is theirs. Yet, if you are a student you are penalised hundreds of pounds a month. This could prevent students seeking higher education as to not put their families in financial hardship