Microsoft Will Retire Free Office 365 A1 Email for Schools, Moving Them to an A0 Plan Without Exchange or Teams

Microsoft is retiring Office 365 A1, the free plan that gives schools, colleges, and universities web versions of Office apps, Teams, and email at no charge. The change takes effect at each institution's first renewal or extension on or after January 1, 2028, and institutions that want to keep student mailboxes will need paid licenses after that point.

Microsoft is also retiring two related programs: the Student Use Benefit, which provides student licenses at no extra charge when an institution buys qualifying faculty licenses, and free Exchange Online for Alumni, which lets graduates keep their school mailboxes. Microsoft plans a paid replacement for the alumni service.

What Replaces Office 365 A1

The free tier continues under a new name, Microsoft 365 Education A0, but it drops the services most schools rely on day to day. A0 does not include:

• Exchange Online, the service that hosts school email
• SharePoint Online, used for shared files and internal sites
• Teams, used for classes, meetings, and chat

Eligibility for A0 also depends on paid faculty licensing and on students actively using Windows devices for education. Microsoft is changing storage entitlements across the education plans as well, and it is adding Microsoft 365 Education A7, a new top tier with AI, security, governance, and device management features.

Microsoft says the change reflects how institutions now evaluate AI, security, privacy, and teaching tools together. The company also pointed to "the value Microsoft 365 Education has gained since the last pricing change nearly a decade ago."

Key Dates for Schools and Universities

The retirement is spread over the next two years, and existing agreements stay valid until they run out:

1. November 5, 2026: Office 365 A1 stopped accepting new web direct orders.
2. May 1, 2027: partner channel sales of Office 365 A1 end.
3. January 1, 2028: retirement begins, applied at each institution's first renewal or extension on or after that date.

The reaction in the UK has been negative. The Department for Education said it was "disappointed" by the decision, but added that it had negotiated additional concessions that give UK schools, colleges, and universities more time to move to new licensing agreements.

One industry insider estimated that losing free Microsoft hosted email could add thousands to an institution's bill, and another education organization raised concerns about affordability and equal treatment across the sector.

IT teams in education should check when their current agreement renews, since that date, not January 1, 2028, decides when the free services end for them. Institutions that depend on A1 for student email will need to budget for paid licenses or plan a move to another email provider before that renewal.

Microsoft has not published prices for the paid alumni service or said how much the new paid tiers will cost per student.