I am having a similar issue, the error log in namaste settings says:
"Paypal payment attempt failed at February 8, 2014 9:42 pm: Business email is wrong: myemail@gmail.com"
The payment did go through paypal (business) and my bank (test student).
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stlouisweb@gmail.com on "[Plugin: Namaste! LMS] PayPal not activating Subscription or redirecting"
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