Crackdown on Those Clinging to Student Discounts Imminent – The UBJ

Student discounts have long served as a financial lifeline for those in higher education, providing a range of benefits from reduced subscription rates to significant discounts on tech products. However, a shift is occurring as companies clamp down on who can access these deals, deploying advanced verification methods to enforce eligibility and prevent abuse. This trend reflects broader changes in how businesses manage and offer discounts, particularly in light of the financial pressures faced by both students and companies.

Garner Ted Leverette’s experience underscores the growing tension between extended use of student discounts and new eligibility restrictions. Leverette, who graduated from the University of Southern Mississippi in 2019, continued to enjoy discounts on services like Amazon Prime and various retail outlets well into his post-college years. Leverette’s student status allowed him to save thousands of dollars, thanks to discounts such as 50% off on Amazon Prime and up to 20% off at other businesses. His case highlights a common practice among former students who continue to use their student status to benefit from financial perks long after graduation.

The shift in policy became evident in 2022 when Amazon removed Leverette from its Prime Student program. Amazon’s student discount, previously accessible to individuals using their college ID or school email, now requires proof of current enrollment in a degree-granting institution and limits eligibility to those aged 18 to 24. This change highlights a broader movement among companies to tighten the criteria for student discounts, aiming to ensure that these benefits are used appropriately and by those genuinely in need.

In response to the rise in misuse, companies are increasingly turning to advanced verification technologies to uphold eligibility standards. Services like SheerID and UniDays are at the forefront of this trend, using sophisticated tools to verify student status. SheerID, for instance, collaborates with over 300 brands, including notable names like Spotify and The Wall Street Journal, to authenticate customers. By accessing a vast array of data sources, such as university registrars, and employing techniques like facial recognition and IP address tracking, SheerID companies help mitigate the risk of fraud.

Applicants typically need to provide their school email address, date of birth, and sometimes a photo of their student ID or transcript. This rigorous verification process is designed to prevent unauthorized use of student discounts and ensure that only eligible individuals benefit from these deals. Over the past year alone, SheerID’s efforts have prevented approximately $2 billion in fraud, highlighting the significant impact of these verification measures.

The importance of student discounts in building long-term customer relationships is not lost on companies. Stephanie Copeland Weber, CEO of SheerID, emphasizes that offering these discounts helps build trust and loyalty with students, marking a transitional phase from adolescence to adulthood. Many companies report that a high percentage of their student customers continue their subscriptions or maintain relationships with the brand even after graduation. For example, streaming services that utilize SheerID’s verification services retain more than 90% of their student customers post-graduation, illustrating the effectiveness of these strategies in fostering customer loyalty.

However, the tightening of eligibility criteria is not without its consequences. Ben Huff, a 25-year-old musician who studied at the School of Jazz and Contemporary Music at the New School in New York, found himself cut off from student discounts after graduation. Despite working at the college and using discounts on services like Spotify and Hulu, Huff’s access was flagged by SheerID as ineligible, costing him about $300 in potential savings. His experience reflects a broader issue faced by many former students who are now grappling with the loss of previously enjoyed financial perks.

As education costs continue to rise, the role of student discounts remains crucial for many. Companies like Apple and Verizon offer targeted discounts to students, faculty, and even parents, acknowledging the financial strain of education. Apple’s education discounts, for example, include reduced prices on hardware and services like Apple Music, although verification is required for in-store purchases. Verizon provides monthly discounts on wireless plans and broadband services, further highlighting the value of these offers.

The trend towards stricter eligibility and verification reflects a broader shift in how companies manage their discount programs. As they navigate the challenges of fraud prevention and financial sustainability, the focus is on balancing the provision of valuable savings with the need for effective oversight. For students and recent graduates, this means adapting to new verification requirements and possibly losing some of the financial benefits once taken for granted.

In conclusion, the tightening of student discount eligibility represents a significant change in the landscape of savings for students and recent graduates. With companies implementing advanced verification systems to curb misuse and fraud, accessing these discounts is becoming more challenging. While the benefits of student discounts continue to be significant, the shift towards more rigorous eligibility criteria reflects a broader effort to manage and sustain these valuable financial perks.

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