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

[DPCreations]

If you want answers you would need to phone PayPal customer service.  It is not likely, however, that they will disclose their business decisions since you are not part of PayPal management.

What is known now is that the student accounts will be discontinued; that will not change.

All you can do is look for your own future options.  You can realistically look for alternative future solutions or you can complain about what you cannot change.

[stihlfixing]

Yep, that summarizes it.

[rabidnerd]

I've shifted to American Express Serve Subaccounts, which are close (but not the same - AmEx not accepted as widely here, not as flexible). I've also poked Simple about coming up with an option, but they just said maybe in the future.

Paypal has really **bleep** the pooch on this one. 

They're turning future users away. 

What next, eBay stops accepting them? 

I have a feeling PayPal has jumped the shark officially.

[mtneiswender]

agree with this. my daughter at college just opened an online bank account to replace this. she would certainly have stayed w paypal had they done anything but say "were closed, leave now". that email notice didnt offer any alternative, it was more like being kicked out of paypal. Her answer? Who needs you then,  see ya.

[DPCreations]

If PayPal provided a reason, would that have made a difference?  My guess is not as you would have still been unyhappy with the closing.

Would you have been happy if PayPal started charging a fee rather than have a free service?  Charging a fee might have been a way to make it a profitable business product for PayPal.

[MawMawAngie]

Ok,  so Student Accounts will be closed.  My issue is my son has impulse control problems.  PayPal was the only account that let me leave his account at $0 until he needed money.  When he was going somewhere and needed money I transferred what he needed.   I can't find anyone else that will not pull money directly from my checking account if tries to use the card.   Any suggestions would be appreciated.

thanks in advance

[lancelotme]

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@MawMawAngie wrote:

Ok,  so Student Accounts will be closed.  My issue is my son has impulse control problems.  PayPal was the only account that let me leave his account at $0 until he needed money.  When he was going somewhere and needed money I transferred what he needed.   I can't find anyone else that will not pull money directly from my checking account if tries to use the card.   Any suggestions would be appreciated.

thanks in advance

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your son needs to learn,and may as well learn it now.

Someday you wont be around to bail him out, 

[BHBritt]

I believe we are looking for alternatives with similarities to PayPal's student account, NOT parenting advice. Thank you very much.

[LorriA]

its shameful if you are who they offer to help answer questions. you answer arecold and uncaring.

[Temp20211002Z]

Hey Mr Shill, why don't you take your ignorant sunshine attitude to a different thread, the point is that PP Student accounts were a great value add service and a superior long term strategy to attract and keep customers, Paypal blew it PERIOD.  I got through to a CS rep who was so cheery in telling me that the student account was not a good product was cumbersome to use and so they were going to come out with somthing new in the future.  This a an epic fail and probably a lie. 

#1)  you don't kick customers to the curb because you are going to come up with somthing new, those customers will find an alternative, those that don't are probably too stupid to use even your new and improved product without frustratiion so Zero upside to this strategy.

#2) eBay obviously totally ruined the management at PayPal, I am old enough to remember the first online payment wars and the companies were literally spending hundreds of millions of dollars to attract customers now just like ebay PP thinks it is all that and cannot be toppled, they own x.com and don't even bother to redirect it to their site anymore --ARROGANCE 

#3) The way this has been communicated and allowing folks to continue to sign up is so stupid it is beyond comprehension. 

#4) Lets say that PP had no choice in this that the mob was using student accounts to launder drug money and the feds told them to shut it down, wouldnt you figure out a way to upgrade the accounts that could be upgraded?  My 18YO had a student account  and getting that converted to a "regular" account was nothing short of a nightmare.

PP is going the way of Twitter, great Idea, great possibilities, but in the end so arrogant that the alternatives over took them.

This is what you get when the average age of your enmployees is 26