By Emma Thompson
Publication Date: 2026-11-11 00:15:00
Microsoft will retire free Office 365 A1 education licenses and the Student Use Benefit at institutions’ first contract renewal or extension on or after January 1, 2028, as it introduces a dedicated Microsoft Classroom app.
The changes will require schools and universities using those benefits to review which students need paid licenses. Microsoft’s replacement no-cost student edition, A0, will include Office applications but exclude Classroom, Teams, email and SharePoint.
Microsoft will also remove the existing 100 TB base storage allocation at the same renewal point. Institutions’ shared storage capacity will instead depend on their paid faculty and student licenses.
The announcement combines a new teaching environment with changes to how institutions purchase and manage Microsoft services. An earlier pricing change for online services bought through Academic Volume Licensing will begin at qualifying renewals from May 1, 2027.
