Master's loan and Universal Credit

I have a Student Loan to fund my master's (Full time, 7 hours per week). In my award letter, it states I can still be eligible for Universal Credit, but that UC will just count my loan as additional income and calculate my UC payments with this deduction in mind. There are no tuition fee loans or maintenance loans for Master's study (it is a one off loan). 

When I mentioned this to my local Job Centre, they said that I will not be eligible to claim UC because I cannot actively look for work for 35 hours a week. 

I just don't understand why UC would be mentioned in my award letter if I was unable to claim it.
In a sense, I am being paid to study  7 hours per week, therefore I do not understand what the issue is. 
I will still be looking for additional work of 35 hours per week. 

Any help appreciated!

Thank you 

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