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I inform Universal Credit about my scholarship to study

I'm currently on Universal Credit and have been trying to find work for the past 18 months with little success and no real support. I recently found a university offering a scholarship for my course, so I informed UC that I’ll be starting this program, which is being funded through the scholarship. Now, UC keeps asking me in various ways about applying for student finance, even though I’m trying to avoid debt by going the scholarship route.

Is it compulsory to apply for student finance if the scholarship covers my course fees? And if I do apply, will student finance inform UC?

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