Nope, it's still $899 unless you 100% for sure were already going to buy some other Apple accessories or apps that are worth $150~. For me, who wouldn't want to buy anything else, I'd rather have $150 off the price of the Mac. But since you can't use the gift card for the Mac purchase or applecare+ for it, it's not actually a discount. It's just "buy this, get discount on something else, assuming you had already planned to get something else"That effectively makes the “old” M1 Air $749. Great deal and plenty of computer for the average student.
Students would largely be better off (like most people, but especially when budgets are tight) buying a used laptop that's a few years old but in very good condition. I've done that for years and never had any issues with any of my Macs. And saved quite frankly thousands of dollars over the years.