Another really useful office365 PowerShell nugget for setting password never to expire, from http://blogs.technet.com/b/educloud/archive/2012/06/25/turn-off-password-expiry-in-office-365-for-education.aspx.
First off start with the normal connection routine:
1. > $LiveCred = Get-Credential
2. Now you need to enter your office365 credentials in the popup
3. > $Session = New-PSSession -ConfigurationName Microsoft.Exchange -ConnectionUri https://ps.outlook.com/powershell/ -Credential $LiveCred -Authentication Basic -AllowRedirection
3. > Import-PSSession $Session (note that if this command fails, you may have to use “Set-ExecutionPolicy RemoteSigned” first, but please make sure you understand the implications of this first).
4. > Connect-MsolService
Then the final step to reset the actual password:
5. Set-MsolUser –UserPrincipalName YourUPN -PasswordNeverExpires $True
Where YourUPN is your user principal name, e.g. firstname.lastname@example.org