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How do I base pay for work done by students?

I`ve found a very talented artist to do some basic artwork for my business - simple advertising brochure, poster, etc. He just happened to be the best artist who replied to my ad, I wasn`t necessarily looking for the `cheapest` option. But he has no actual work expereince or background, his entire portfolio consists of school assignments and random sketches he`s done for his own amusement. I want to offer him fair payment for his work and talent, but I`m torn between paying him as an un-experienced student verses paying him for work on a professional project. Advice??
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However, I am a big proponent in paying a little over the going rate for any position, including entry level positions, just to ensure staff members are demotivated by feeling as if they are underpaid.
Very good replies and advice, thanks to all.
Of course anyone would find it unethical to offer two $5 for one $20, good analogy. But would you pay $60 to a `professional landscaper` (a guy in a pickup truck with a riding mower) to mow your lawn; or $20 to the kid down the street for the same job?