Ask HN: Is it a smart move to give out discount for students?

I run an API service and was recently contacted by a professor at a university asking for a discount for a subscription with my service. They are asking for more than 1 million request, which would run for about $1k. However it would only cost me about $100 in server cost. I want give it to them $1 so I have some kind of record and accountability if my service gets abused.

What are the pros and cons? What would you guys do in my situation?