Why is the PayPal Student Account being discontinued?

[PayPal_Drew]

Hi Community!

If you are new, thanks for coming to the community forums to understand more about what's happening with the Student Accounts. Feel free to check out any of the other articles while you're here!

We are aware that this may be an inconvenience for some, so we'd like to thank you for understanding the change. Below are some common questions that we have received. If you have any additional questions, please reply to this thread and the community can respond to you.

Why is the PayPal Student account being discontinued?

PayPal has decided to close PayPal Student Accounts and PayPal Student Debit MasterCards on the following dates:

     • Effective September 29, 2016, PayPal Student accounts will no longer be able to make purchases online.
     • Effective September 29, 2016, the PayPal Student Debit MasterCard® card, and related services, will be closed.
     • Effective November 15, 2016, the PayPal Student account will be closed.

What happens to the money in the Student account balance?

Any money that is not spent from the Student account prior to November 15, 2016, will be moved to the student’s parent’s PayPal account. The student account will no longer be able to make purchases effective September 29, 2016. You will still be able to send and withdraw money until November 15, 2016.

Is there a replacement product?

At this time, we aren’t introducing a replacement for PayPal Student Accounts and PayPal Student Debit MasterCards. We will continue to explore ways to serve our younger population in the future. If the student is over 18 years old, we invite them to sign up for a PayPal account so they can enjoy the benefits PayPal offers, such as sending, receiving, and spending money online and in-stores. We appreciate your business and apologize for any inconvenience.

Because the Community Forum isn't actively monitored by our Customer Service team, please reach out to us via phone if you require immediate assistance. You can do this by visiting the "Help & Contact" link on any PayPal webpage, selecting "Call Us", and continue as a guest if you're not logged in to your account. 

If this post is helpful, please accept it as a solution or provide kudos. 

Thanks! 

- Drew

[MadDAD2]

same problem. complete runaround. PayPal has really poor customer service. This whole situation is so poorly communicated it's obsurd. You can still open a student account via their website. My repeated emails have not been answered. 

[ukdebc]

I was able to get through to Customer service to ask some questions about the decision to end the student accounts effective 9/29/16.

Not a spoof - confirmed that use of debit card will end by 9/29.

reuse of email addresses - I was told that if you call to cancel the student account beforehand (and shoot did not get clarification on before the 9/29 or 11/15 date)  it is then that email can be reused to open a new paypal account (presuming that person is 18 and older).

it is very disappointing that more notice was not provided - and go figure, I can still open a new student account as of today.

[LTinGA]

And even more strange...the day after we received our email notice they were canceling student accounts, 2 of my 3 kids who have them received new cards. How stupid!

[thooks721]

YES! They sent me the approval and then the next day I got the email and the day following that I received the card. Why issue the card on an account they knew wouldn't be able to be open?

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@LTinGA wrote:

And even more strange...the day after we received our email notice they were canceling student accounts, 2 of my 3 kids who have them received new cards. How stupid!

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[T2-_]

I just spoke with a Paypal community rep. I explained how essential this card is for our family. It sounds like they are going to eventually come out with another "product" for students. In the mean time she said an alternative was for me to get a Paypal debit card. Once I receive that debit card (5 to 10 days), I can order a second card for my child. Hope this helps folks.

[lancelotme]

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@T2-_ wrote:

I just spoke with a Paypal community rep. I explained how essential this card is for our family. It sounds like they are going to eventually come out with another "product" for students. In the mean time she said an alternative was for me to get a Paypal debit card. Once I receive that debit card (5 to 10 days), I can order a second card for my child. Hope this helps folks.

 

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Your Paypal debit card will take the fund from your Paypal balance and then your bank account linked to your PAYPAL account?

If it is your regular bank account,your child will have unlimited access to your $ dough$. up to daily limit and ATm WITHDRAWAL 

[JJL727]

I too, like most others, am disappointed.  It's a great service, with a lot of value, and helps to retain me as a loyal PayPal user (and theoretically motivates my children in the same way for the future).  The reason I came to the community forum, though, is because I have been on hold (forever) with PayPal trying to verify that the e-mail I received last night was not a spoof,  Now that I see all these postings, I think I safely can hang up.

What's also a little disconcerting was that the tone of the e-mail that I received was cold and flippant.  I'm used to pretty darned good customer service from PayPal, but in this instance, it was different.  E.g., the e-mail didn't start off with something along the lines of "After much deliberation, we have made a business decision to cancel the student card program and direct our energies...."

Management ought to have a serious conversation with their communications director (as well as whoever is reprogramming their automated voice system these days...lousy).

JJL

[Shannon74]

Exactly.  

And the email went to 15 year old kids.  Talk about confusion.

[XReBillx]

I am furious this is happening, and with hardly any notice at all! My kids just started school today and they're all under 18, so there's no alternative. I loved how simple and convenient it was to send them money and for me to track everything. Now what?? I have to give my kids their allowance in cash again? I think they've scarred these students by doing this and they likely won't make their own Paypal if and when they're able to. Bad move, Paypal. You're inconveniencing so many people and you're losing business. Why not lower the age to make an account then? I have to imagine many students that use the card are teens and can't even make their own account.

[pmisner]

I found out from my son they are ending PayPal Student in November. Right before they can use their allowances to buy Christmas presents. What are the options available?