It's a sign of a really poor decision making process.
They were currently being paid some amount, and got their product in front of the next generation of Software Engineers. People who hopefully will like the product, and grow up to evangelize it in their workplace.
Instead now, they'll get paid $0 (because obviously the non-profit can't afford the new price) and they won't get their product in front of those students.
See similar example of Microsoft losing mindshare with the next generation in the early/mid 2000's by locking down paid access to all their developer tooling/documentation.
They were currently being paid some amount, and got their product in front of the next generation of Software Engineers. People who hopefully will like the product, and grow up to evangelize it in their workplace.
Instead now, they'll get paid $0 (because obviously the non-profit can't afford the new price) and they won't get their product in front of those students.
See similar example of Microsoft losing mindshare with the next generation in the early/mid 2000's by locking down paid access to all their developer tooling/documentation.