Well, arguably, the students were taking advantage of a loophole. They were receiving income and it wasn't being taxed, it's just that the letter of the law did

Well, arguably, the students were taking advantage of a loophole. They were receiving income and it wasn't being taxed, it's just that the letter of the law didn't consider this a form of income. They're still earning $10,000, it's still income, it's just coming off the paycheque before they receive it. But I do agree that this is the stupidest, pettiest loophole to close, especially because it's funding cuts of people who absolutely do not need them.