Microsoft is updating its education licensing policy, phasing out the free Office 365 A1 and Student Use Benefit programs. Starting January 1, 2028, the company will discontinue the 100TB base shared cloud storage quota for educational institutions. Existing agreements remain valid until their expiration, but renewals after this date will require transitioning to the new licensing structure.
The new licensing framework consists of five tiers: A0, A2, A3, A5, and A7. The free A0 tier for students excludes Exchange Online, SharePoint Online, and Teams. Storage capacity will now be calculated based on the specific license type and number of users, with A7 being the top-tier offering that includes advanced AI, security, and Microsoft 365 Copilot features.
The company is also ending free Exchange Online services for alumni, with a new paid option launching on January 1, 2028. Additionally, Microsoft plans to standardize online service pricing across all academic volume licensing levels starting May 1, 2027. Institutions are advised to evaluate their storage needs and licensing requirements before their next contract renewal.
