Penn State University has teamed up with Napster to offer students free downloads from the library of over "500,000 songs, as well as 40 radio stations, access to six decades of Billboard chart data, an online magazine and community features."
Students can download and keep the music files on up to three personal computers, but must pay for the songs if they want burn them to CD or to transfer them to portable players. Read more about this agreement at Penn State's news site. There is also a Question and Answer about this agreement. Congress has praised Penn State for being a leader in the fight against illegal downloading.
News source: Penn State Home Page