John,
Thanks for post.
I applied for a student visa first, because I was not aware I could apply for an UPV when we first arrived into the UK.
I understand that it should not be a problem applying for UPV once we are living in the country, and as we have travel plans up to the new year, I shall apply in Janurary.
I did speak to the finance dept at my uni, and they are happy to "recognise" me for EU fees, if I can prove to them, that I have a "right" to live in the UK.
I can only apply, and if successful, will approach my finance dept again!
I can empathise with your wife. English is my first language, however, in order for me to apply for registration with the medical council in the UK, they required that IELTS had to be taken. Needless to say, I did very well in the exam

but the funny thing is, doctors within in EU whose english is very poor, can register with the UK medical council without taking both english exams and competency exams practicing medicine in engligh.
Regards to your wife doing her masters degree!