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I'm sure its saying living loan (could be grant in this context) or assistance and not "pay to stay alive".

"Loon" is Dutch for wage. A loan would be "lening", even though "loon" and loan sound exactly the same.

> not "pay to stay alive"

Focus on this part. (Edit: I consider the choice of words either clumsy or insensitive)

Because without an income people tend to not live for very long and that idea makes people uncomfortable? I had not considered that.

"Wage to live on" is perhaps a more euphonic translation then.