Same problem in Austria. Guess I'm gonna have to cancel my membership, I am definitely not paying twice the price just because I do not own a credit card when I really do not see the problem in making paypal a payment method for this discount when it works for every other spotify premium membership as well.
I do not think that they are going to fix it, I think that it is in favor of them: maybe they found out that the students where more than they thought so the discount wasn't a great deal for them anymore. By removing the paypal option they were able to make a lot of students go to the full price and the loss maybe was less than the gain... Sooo yeah at the end of this month I'm gonna end my membership. This is not acceptable whether I'm right or wrong. It is a really easy problem and they are taking a suspicious long time to fix it.