It's not as irrational a decision as you make it sound. They may spend $3 per day instead of $30 for the month, but they preserve their optionality. College is typically a turbulent time, and paying $30 up front for a service that you end up not needing because your schedule changes unexpectedly would suck.
I think the offer should've been to have a $1/night fee, with free instant coffee/water/tea.
but of course, the coffee they buy at the station is worth the $3 (apparently), and the location was free in their minds. Therefore, the comparison is to have to pay another $3 for coffee else where and then bring it into this space they rent (and pay another $1). That's obviously sounds like a bad deal.
Also I didn’t need to study every night in a month. There’s a handful of stretches where I need to grind but it’s was sporadic. Certainly not something I want to manage a monthly payment for.
Also, in a college students mind, your value comp is a Netflix subscription.
$1 a night (as suggested by sibling) or even $3 a night would have been an instant sell.