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

[lancelotme]

If Paypal is coming up with something new,then they want to keep accepting new applicants so they can switch to the new product,whatever it is .

[MagsP]

Amex has an alternative for debit and family accounts.  Bluebird.com

[SHEPPARD2]

This is redeculous. I had a regular paypal account and it got shut down becuase i was under age and they told me to make a student account which i did and it was freat untill they told me they were shutting down all stdunet accounts. I have a steady income coming to that account each month and now i cant sen that mnoney anywhere untill I can get a regular paypal account in 4 years.

[DPCreations]

For a student account, the funds will go to the Paren'ts account when it is closed.

[lancelotme]

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@SHEPPARD2 wrote:

This is redeculous. I had a regular paypal account and it got shut down becuase i was under age and they told me to make a student account which i did and it was freat untill they told me they were shutting down all stdunet accounts. I have a steady income coming to that account each month and now i cant sen that mnoney anywhere untill I can get a regular paypal account in 4 years.

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how did you manage to open a student account without your parent?

[Flware]

So yesterday, out of the complete blue I recieved notifcation that PayPal has decided to end student accounts. This is not only surprising it is disruptive as discontinuation is scheduled to happen 9/29 giving parental account holders less than a month to find suitable options. I understand business practices and streamlining product offerings however this was done without regard to the many families that hold student accounts and the resulting implications. Additionally, I am sure that PayPal did not make this decision the same day the email was generated so it would have been really nice to know that this was a consideration and perhaps been asked for feedback on how we use the products and what value we, as customers find in it.  At the very least parents should have been notified that this was happening and given until the end of the year to find alternate arrangements.

I am not happy with this decision....

[kernowlass]

@Flware

ok thats a shame.

[lancelotme]

9/29 -thats ample time for parents to come up with an alternative to Paypal.

Western Union,online banking,slow USPS first class mail,

first class mail is 3-5 days,priority is 3-4 days. 

[DPCreations]

Wouldn't it also be possible to open a local bank account and then allow the student to use a debit card associated with the bank account.  As I see it there are many options and plenty of time to adjust.

[Montgomery21]

 Anyone who believes "Western Union,online banking,slow USPS first class mail," are comparable to PayPal student accounts doesn't understand how student accounts are used.

For example, my son's hockey team has their finances set up so they ONLY accept fee payment via PayPal. Last year they did that in response to a really big advertising push from PayPal. All the STUDENTS on the team have PayPal accounts now to pay their fees. Now, start of hockey season when fees are supposed to be paid every month through March, PayPal is eliminating the only way the kids can pay their fees. Western Union is useless here.

My kid's paycheck goes directly to his PayPal account - takes over 2 pay cycles (28 days) to make a change - so 1 month notice is a real problem there.

Local bank accounts have major, restrictive regulations and are lousy for doing anything online. Funds transfer on PayPal - a matter of seconds. Funds transfer with a local bank - 3 to 5 BUSINESS DAYS.

PayPal's made a terrible decision to abruptly close student accounts. They should have done it at the start of the summer AND STOPPED ADVERTISING STUDENT ACCOUNT. Instead they wait until a whole lot of people have just set them up for their college bound kids. Oh, and the day after PayPal announced they are closing the account they are still advertising them.