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I get this question a few times a week so I looked up the official answer from the Corel web site. Eligibility to purchase CorelDraw X3 Student/Teacher edition.

To purchase education versions of shrink-wrapped software, or take advantage of the Corel Volume Purchase Program, purchasers must be: accredited schools, faculties, full- or part-time registered students, academic supervisory organizations, hospitals, libraries, museums, and nonprofit charitable and religious organizations. The aforementioned categories for eligibility for education pricing are further described as: Accredited Schools Institutions may be either publicly or privately owned Preschools Elementary schools Secondary schools Vocational schools Correspondence schools Junior colleges Colleges Universities, or scientific or technical institutes recognized by the appropriate ministry or department of education K-12 Educators, Vocational, college or university faculty Proof of current employment is required. Faculty and/or staff members (full- or part-time) of any accredited school Registered and/or state-recognized home educators providing primary or secondary education Students Full- or part-time registered students. Valid photo student identification is required if purchasing through a Corel Authorized Education Reseller. If a photo ID is not available, then two pieces of ID are required. Supervisory Organizations Boards of education Ministries of education School district administrative offices State departments of education Hospitals All hospitals. Health Management Organizations (HMO) and headquarters are excluded Libraries All public and school libraries (publicly or privately funded) providing not-for-profit library services to a community, region or district Educational Consortia and Systems Corporations and associations validly organized and existing under the laws of a state, province or territory Museums Permanent public or private nonprofit agencies or institutions organized for educational, aesthetic or cultural purposes Must own or use objects for exhibition to the general public on a permanent and regular basis Must collect, preserve, study, interpret, assemble and exhibit objects and specimens of educational and cultural value, including artistic, scientific (animate or inanimate), historical and technological material, to the public for its instruction and enjoyment Nonprofit Charitable Organizations Charitable organizations not affiliated with a profit-making company or organization. In the U.S., refer to IRS Tax Exemption 501 (c)(3). In Canada, refer to Revenue Canada Income Tax Act, Section 149.1 on charities Religious Organizations Any religious body considered charitable under provincial, state or country laws. In the U.S., refer to IRS Tax Exemption 501 (c)(3) The organization's beliefs and practices must not be considered subversive or immoral by the courts or laws of the province, state or country Exclusions: Congregation members or parishioners are not eligible for academic pricing. Organizations must present proof of charitable or nonprofit status and a completed Corel Nonprofit and Charitable Organization Request Form to any Corel® Authorized Academic Reseller. Terms and Conditions Organizations must be able to show proof of eligibility and applicable accreditation if requested by Corel or a Corel Authorized Education Reseller. It is Corel's sole discretion to accept or decline the applicant. Any issues or concerns regarding the preceding definitions shall be resolved at Corel's discretion. All software must be used for internal administrative or educational instruction purposes only. Products may not be resold, donated or used as a prize in any promotion.