From the Google Blog:
San Jose City College (SJCC) has embarked on a technology improvement program, and for the first time will be offering student email accounts. That's where we come in. We're testing a new service with the school by hosting Gmail accounts with SJCC domain addresses (like firstname.lastname@example.org), plus admin tools for efficient account management. Massive storage and features that tame the most unruly inboxes, like powerful mail search, conversation view for messages, and a fast interface, make Gmail very handy for students. Together, we're pleased to provide this channel for better communications and a stronger community for all 10,000 SJCC students.
If your school, business or organization is interested in following SJCC's lead, let us know.