It is 2013, two factor authentication is here and it is open source software. You can use Google Authenticator[1] for free or you can use something like the YubiKey[2]. If the students have a smartphone then Google Authenticator is on almost all of the major platforms.
Right, but your article is talking about outlook.com.
Office 365 and stand alone (ie: private) exchange installs certainly support it.
Comparing outlook.com to 'Microsoft Exchange' (whether you're talking about Office 365 which is MS's 'cloud' solution, or private Exchange servers) is not exactly fair. One is designed as a free email hosting solution for personal use (essentially replacing Hotmail), the other is designed for business/organizational use and costs money.
It is 2013, two factor authentication is here and it is open source software. You can use Google Authenticator[1] for free or you can use something like the YubiKey[2]. If the students have a smartphone then Google Authenticator is on almost all of the major platforms.
[1] http://code.google.com/p/google-authenticator/
[2] http://www.yubico.com/about/background/