Microsoft to retire free education email and student licensing benefits

Microsoft is retiring its free education email service, leaving schools, colleges and universities facing new licensing bills if they want to keep students' mailboxes. The company announced plans to retire Office 365 A1, the Student Use Benefit program, and free Exchange Online for Alumni. The changes generally take effect at institutions' first renewal or extension on or after January 1, 2028.

What is being retired

Office 365 A1 provides eligible institutions with web-based Office applications, Teams, and email at no charge. Its replacement, Microsoft 365 Education A0, excludes Exchange Online, SharePoint Online, and Teams. Eligibility for the new tier also depends on paid faculty licensing and students actively using Windows devices for education.

Microsoft is also retiring free Exchange Online for Alumni, which lets graduates retain their mailboxes, and the Student Use Benefit, which provides student licenses at no additional charge when institutions purchase qualifying faculty licenses. Microsoft plans a paid alumni replacement.

Impact on institutions

An industry insider said the loss of free Microsoft-hosted email could add thousands to institutions' bills. Another organization noted significant concerns around affordability, equitable treatment across the sector, and the longer-term implications of the changes.

A spokesperson for the UK's Department for Education said the department was disappointed that Microsoft made the decision, but was pleased to have successfully negotiated some additional concessions for the UK, giving schools, colleges and universities the time they need to transition to new licensing agreements. A spokesperson for UK education technology body Jisc said its focus has been on ensuring that UK education providers are well supported and have sufficient time to assess their options, and that it continues working closely with Microsoft and sector partners to support those discussions and help institutions make informed decisions about their future requirements.

Microsoft's explanation

Asked why it was removing those services from the free tier, Microsoft framed the overhaul as a response to institutions' changing needs. A spokesperson said education institutions are evaluating AI, security, privacy, governance, and teaching and learning as connected priorities rather than separate technology decisions. Microsoft is updating the portfolio now to provide a clearer path from foundational access to advanced capabilities, while enabling institutions to adopt technology according to their needs and readiness. This evolution reflects both the value Microsoft 365 Education has gained since the last pricing change nearly a decade ago and the structure of the new portfolio. Microsoft's broader goal is not technology adoption for its own sake; it is to support AI and digital experiences that strengthen learning, preserve educator judgment and give institutions the controls they need to manage data, privacy, and responsible use.

Timeline and new offerings

Office 365 A1 stopped accepting new web-direct orders on November 5, 2026, with partner-channel sales ending on May 1, 2027. Retirement is scheduled for January 1, 2028, but existing agreements remain valid through their current terms. Institutions that need continued service must move to replacement licenses at the applicable renewal or contract expiry.

Microsoft is also changing storage entitlements and introducing Microsoft 365 Education A7, described as its most advanced education offering, which adds AI, security, governance, and device-management features.

Sources: The Register