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A NEW CHAPTER FOR IOWA’S STUDENTS
HOW IOWA COLLEGE STUDENTS ARE UNNECESSARILY
PAYING AN EXTRA $130 MILLION IN
TEXTBOOK COSTS
A NEW CHAPTER FOR IOWA’S STUDENTS HOW IOWA COLLEGE STUDENTS ARE UNNECESSARILY
PAYING AN EXTRA $130 MILLION IN TEXTBOOK COSTS
WRITTEN BY:
ALEC SPRAGUE
IOWA PIRG EDUCATION FUND
SEPTEMBER 2013
ACKNOWLEDGEMENTS
The author sincerely thanks Nicole Allen for her years of advocacy for affordable textbooks, and for her past research that has helped to contribute to this report. A special thanks to the College Board for their research on the cost of higher education, which contributed to the findings in this report. Thanks also to Sara Holm, Joshua Kublie, Steve Blackledge, and Sonia Ashe for editorial support.
This report draws on a volume of work by the Student PIRGs on textbook affordability. Find out more about the Student PIRGs’ textbook affordability project at www.studentpirgs.org/campaigns/sp/make‐textbooks‐affordable.
The author bears responsibility for any factual errors. The recommendations are those of the Iowa PIRG Education Fund. The views expressed in the report are those of the author and do not necessarily reflect the views of our funders or those who provided review.
Copyright 2013 Iowa PIRG Education Fund
With public debate around important issues often dominated by special interests pursuing their own narrow agendas, Iowa PIRG Education Fund offers an independent voice that works on behalf of the public interest. Iowa PIRG Education Fund, a 501(c)3 organization, works to protect consumers and promote good government. We investigate problems, craft solutions, educate the public, and offer Iowans meaningful opportunities for civic participation. For more information about Iowa PIRG Education Fund or for additional copies of this report, please visit www.iowapirgedfund.org
Table of Contents
Executive Summary ...................................................................................................................................... 1
Introduction .................................................................................................................................................. 2
Findings ......................................................................................................................................................... 3
Recommendations ........................................................................................................................................ 5
Conclusion .................................................................................................................................................... 7
Appendix A – Estimates of what students spent on textbooks last year at the top schools in Iowa ........... 8
Appendix B – Tips to save on textbooks ....................................................................................................... 9
Notes .......................................................................................................................................................... 12
EXECUTIVE SUMMARY
College textbook prices have skyrocketed in recent years, threatening the affordability and accessibility of higher education in Iowa. The average full‐time undergraduate student is estimated to have spent $1,168 last yeari on books and supplies at an average cost of $175 per new bookii. As prices continue to rise, the need for solutions is increasingly urgent. Textbook sales at just state‐owned bookstores in Iowa reached approximately $45.8 Million last yeariii and the Iowa Legislative Services Agency placed textbook sales in Iowa at slightly more than $162 million for the past academic year.iv For this report, we multiplied enrollment numbers from a sampling of colleges and universities in the state by the College Board’s estimated budget for what the average full‐time undergraduate student spent on textbooks and supplies in the past academic year. According to these estimates, University of Iowa undergraduate students spent an estimated $25.7 million in the past academic year on course materials.
University or College
Estimate of what full‐time undergraduate students spent on books and supplies during the 2012‐2013 academic year
Iowa State University $29,845,904 University of Iowa $25,694,832 University of Northern Iowa
$12,377,296
Drake University $4,088,000 Grinnell College $1,868,800 A study by the Government Accountability Office found that textbook prices have increased 82% over the last decade and continue to rise 6% per year, about three times faster than the rate of inflation.v The frequent
release of new editions gives students little choice but to buy new versions and stops students from selling back their textbooks after use. Open textbooks, available for free online and also in print at a fraction of the cost of traditional textbooks, have tremendous potential as the solution to high textbook costs and can reduce costs by 80%vi. Applying this rate to the Iowa Legislative Services Agency estimate for total textbook sales in Iowa last year presents Iowa students with an estimated $129.6 Million in savings by transitioning to open textbooks throughout the state. Other states have taken the lead in providing more open textbook options to students. Iowa could be a leading state in the textbook affordability movement, but much more needs to be done. Recommendations:
• Professors at Iowa’s Colleges and Universities can lead the charge on reducing textbook costs. Faculty should seek, consider, and adopt open textbooks and other affordable alternatives whenever possible.
• State policy makers and University
decision makers should invest in the creation of more open textbooks.
• Publishers should develop new models
that can produce high quality books without imposing excessive costs on students.
• Students should take action against
high costs by spreading the word about open textbooks to their faculty, campuses, and community.
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INTRODUCTION
College students know what it’s like to walk into the bookstore and pay $200 for a textbook, or get pennies back for an expensive book at the end of the term. With today’s technology, there’s no excuse for textbooks to be so expensive. The average full‐time undergraduate student is estimated to have spent $1,168 last year on books and supplies at an average cost of $175 per new text book.
Textbook sales at just state‐owned bookstores in Iowa reached approximately $45.8 million last year and the Iowa Legislative Services Agency placed textbook sales in Iowa at just over $162 million for the past academic year. It’s no accident that textbooks are so expensive. The culprit behind outrageous prices is the publishing industry, which notoriously engages in practices like issuing unnecessary new editions to undermine the used book market and 'bundling' textbooks with single‐use passcodes and workbooks that reduce resale valuevii . Even digital 'e‐textbook' alternatives offer scant savings and carry restrictions like printing limits and expiration dates. Publishers can get away with artificially high prices because students are a captive market and need to buy their assigned book no matter the cost. They get away with it because students don’t have a choice – students have to buy the book they’re selling, even if the price is outrageous. In short, publishers continue to drive prices sky‐high while engaging in bad practices that make it harder to rent or buy used books. There has been some progress made over the last few years. A past study conducted by the Student PIRGs evaluated the long‐term potential of rentals, e‐books, e‐readers, and open textbooks as solutions to bring down the high cost of textbooks and found that open text books are a far‐reaching solution for the long term.viii In the last year, both Californiaix and the Canadian province of British Columbiax have created programs to develop a total of 90 open textbooks, which would be free online and cost $30‐40 in print. A program in Washington State called the Open Course Libraryxi has already developed free online resources for 81 courses, saving students $5.5 million since 2011xii. OpenStax College, a project out of Rice University, is developing open textbooks for the 25 largest enrollment courses, which could ultimately save students $750 millionxiii. Iowa should follow suit. State officials and colleges should invest in open textbooks, and faculty should adopt open textbook options whenever possible. Students can take action by spreading the word about open textbooks to their faculty, campuses, and community.
COLLEGE AND UNIVERSITY
STUDENTS IN IOWA SPENT
AN ESTIMATED $162 MILLION ON TEXTBOOKS THIS
PAST ACADEMIC YEAR
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FINDINGS
The purpose of this report is to estimate both the total cost of textbooks for students at a sampling of college campuses across Iowa, and how much students across the state of Iowa would save by transiting to open textbooks. We took enrollment numbers from a sampling of colleges around the state and matched them up with the College Board’s estimated budget for what the average full‐time undergraduate student spent in the past academic year. According to these estimates, University of Iowa undergraduate students spent an estimated $25.7 Million in the past academic year on course materials. Iowa State University undergraduate students spent an estimated $29.8 Million. Figures for the University of Northern Iowa, Drake University, Luther College, Grandview University, Grinnell College, University of Dubuque, and Simpson College are available in the appendix of this report and in the chart below.
All in all, College and University students in Iowa spent an estimated $162 Million on textbooks this past academic year according to the Iowa Legislative Services Agency. Some Colleges and Universities in Iowa have made efforts to bring down the high costs of textbooks. For example, the Iowa State University Book Store released 245 titles in electronic format in 2011, which cost as little as half the cost of a new hard copy of the same title and typically less than a used copy.xiv
Iowa State University, $29,845,904
University of Iowa, $25,694,832
University of Northern Iowa, $12,377,296
Drake University, $4,088,000
Luther College, $2,789,184
Grandview College, $2,102,400
Grinnell College, $1,868,800
University of Dubuque, $1,781,200 Simpson College,
$1,734,480
ESTIMATE OF WHAT FULL‐TIME UNDERGRADUATE STUDENTS SPENT ON COURSE MATERIALS DURING THE 2012‐2013 ACADEMIC YEAR AT
COLLEGES AND UNIVERSITIES IN IOWA
UNIVERSITY OF IOWA UNDERGRADUATE STUDENTS
SPENT AN ESTIMATED $25.7 MILLION IN THE PAST
ACADEMIC YEAR ON TEXTBOOKS
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The progress made over the last few years is promising, but there is still a long way to go before textbooks are affordable for all students. A past study conducted by the Student PIRG evaluated the long‐term potential of rentals, e‐books, e‐readers, and open textbooks as solutions to bring down the high cost of text books and found that open text books are the best solution for the long term.xv This same study found that open textbooks, available for free online and also in print at a fraction of the cost of traditional textbooks, can reduce costs by 80%. Applying this rate to the Iowa Legislative Services Agency estimate for total textbook sales in Iowa last year presents Iowa students with an estimated $129.6 Million in savings by transitioning to open textbooks throughout the state.
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RECOMMENDATIONS
The most effective way to make textbooks affordable is to provide more open textbooks to students. Faculty Professors at Iowa’s Colleges and Universities can lead the charge on reducing textbook costs. Faculty should seek, consider, and adopt open textbooks and other affordable alternatives whenever possible.
• Commit to using open textbooks in the classroom • Ask University decision makers to invest in the creation of more open textbooks • Author a new an open textbook
State policy makers Decision makers at the state level can help spur investment in the creation of more open textbooks. In the last year, both California and the Canadian province of British Columbia have created programs to develop a total of 90 open textbooks, which would be free online and cost $30‐40 in print. Iowa should follow suit. State policy makers should invest in making open textbooks available to more students in Iowa. University decision makers University decision makers should invest in the creation of more open textbooks. A program in Washington State called the Open Course Library has already developed free online resources for 81 courses, saving students $5.5 million since 2011. OpenStax College, a project out of Rice University, is developing open textbooks for the 25 largest enrollment courses, which could ultimately save students $750 million. Iowa’s Colleges and Universities should follow suit, and invest in making open textbooks available to their students. Publishers Publishers should develop new models that can produce high quality books without imposing excessive costs on students. Students Students should take action against high costs by spreading the word about open textbooks to their faculty, campuses, and community.
• Ask professors to commit to using open textbooks • Write University decision makers and State Officials asking for more investment in open
OPEN TEXTBOOKS CAN SAVE IOWA STUDENTS AN
ESTIMATED $129.6 MILLION
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textbooks • Join the growing Iowa PIRG movement to make textbooks more affordable. Find out more at
iowapirg.org For tips to save on textbooks, see Appendix B at the end of this report.
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CONCLUSION
The costs of textbooks to Iowa’s students are skyrocketing, and threatening the affordability of higher education. Textbook sales at just state‐owned bookstores in Iowa reached approximately $45.8 Million last year and Iowans spent an estimated $162 million on textbooks last year. A study by the Government Accountability Office found that textbook prices have increased 82% over the last decade and continue to rise 6% per year, about three times faster than the rate of inflation. In other states, a more positive change is the growing movement for open educational resources (OER), which are textbooks and other materials published online under a license allowing their free and open use. In the past year, both California and the Canadian province of British Columbia have created programs to develop open textbooks which would be free online and cost $30‐40 in print. A program in Washington State has already developed free online resources saving students $5.5 million since 2011. A project out of Rice University is developing open textbooks for the 25 largest enrollment courses, which could ultimately save students $750 million. All of these developments promise alternatives to expensive, traditional textbooks. Iowa should follow suit. State officials, colleges, and universities should invest in open text books. Faculty should commit to using open text books for their courses whenever possible. Students should take action against high costs by getting the word out to their professors, campuses, and community.
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APPENDIX A – ESTIMATES OF WHAT STUDENTS SPENT ON TEXTBOOKS LAST YEAR AT
A SAMPLING OF COLLEGES AND UNIVERSITIES IN IOWA
University or College
2012-2013 posted enrollment
Estimate of what full-time undergraduate students spent on books and supplies during the 2012-2013 academic yearxvi
Iowa State University 25,553xvii $29,845,904 University of Iowa 21,999xviii $25,694,832 University of Northern Iowa 10,597xix $12,377,296 Drake University 3,500xx $4,088,000 Luther College 2,388xxi $2,789,184 Grandview College 1,800xxii $2,102,400 Grinnell College 1,600xxiii $1,868,800 University of Dubuque 1,525xxiv $1,781,200 Simpson College 1,485xxv $1,734,480
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APPENDIX B – TIPS TO SAVE ON TEXTBOOKS
Even though students are stuck paying publishers' outrageous prices, you do have a few tools to reduce how much you spend. Being a smart consumer could save you hundreds of dollars every year. Follow these tips to save on textbooks!
1. Gather the right info. Before you start, here's the information you'll need to make sure you get the right book:
• The ISBN, which is a unique number that goes to each book
• Title, Author, Publisher & Edition
• Any supplements included, and if they are required (ask your prof)
2. Shop for used and new books online. Shopping online gives you a greater selection, which usually means lower prices. Search by ISBN to make sure you get the right book, but also search by title, author, etc. to find unbundled versions and older editions. Just make sure your prof is OK with that first. There is a ton of textbook retailers online, so a simple search will give you plenty of options. Just remember to leave time for shipping! Here are some places to get started:
• New textbooks: Amazon.com, BarnesandNoble.com, or AbeBooks.com.
• Used textbooks: Half.com, Textbooks.com, or eCampus.com.
• Price comparison: CampusBooks.com, BigWords.com or AllBookstores.com.
Some college bookstores, like the one at Drake University, will match prices found at online stores or even provide an additional discount on top off the competitor’s price. Check with your University bookstore before buying!
Pro Tip: Sometimes you can find "international editions" of the same book printed for other countries at way cheaper prices. Try searching the international arms of the websites above (like Amazon.co.uk) or price comparison sites. Just beware that there might be differences in the text if it has a different ISBN.
3. Rent textbooks on campus or online. Renting textbooks is probably your best bet if you don't plan to keep the book at the end of the term. Some schools offer local rental programs, but don't worry if yours doesn't ‐ you can rent textbooks online! Just keep in mind that you'll be charged fees if you don't send it back, and if you're taking a multi‐semester course, you're probably better off buying.
• Textbook rental sites: Chegg.com, BookRenter.com, or CampusBookRentals.com
4. Swap books with other students. Save money by cutting out the middle man ‐ find other students who have your book! With common classes, you can often find books by just asking around. Here are some other ideas if that doesn't work:
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• Try searching for postings on Facebook or Craigslist.
• Check with your campus bookstore or student government for a local bookswap.
5. Buy e‐textbook subscriptions. Don't mind reading on a computer screen? Don't plan to keep the book? Got a high‐tech tablet like iPad or Kindle? Then see if your textbook comes as an e‐textbook!
• E‐textbook sites: CourseSmart.com, BarnesandNoble.com, Kno.com
Buyer beware! Our study on digital textbooks found that e‐textbooks had major drawbacks for a lot of students. Before you buy, here's what you need to know: The average cost is 50% of a new book, which isn't always a good deal compared to used books or renting. E‐textbooks typically expire after 180 days, so think of them as "digital rentals. Make sure to read the fine print for limits on printing and offline access.
6. Look for coupon codes. Many websites offer special deals and coupon codes that can save you 10% or more. Try coupon websites like RetailMeNot.com or cash back sites like Ebates.com. Also watch the Twitter and Facebook feeds of textbook retailers.
7. Compare with the bookstore. If you're buying books last minute, you may not have much of a choice. But even if you have other options, make sure to see what the bookstores has to offer. Here are some basic bookstore numbers to keep in mind:
• Used books are typically 75% of the new price ‐ we've found this to be higher than online prices, but more consistent.
• If a book is being used again next term, the bookstore will usually buy it back for 50% of the new price.
• If the bookstore doesn't know whether the book is being used again next semester, they will buy books back for 10‐30% of the new price... sometimes less.
8. Save your receipts. A $2,500 federal tax credit is available to some students for their textbook purchases and other qualifying higher education expenses.xxvi
9. If you're really stuck. If you can't find your textbook at a price you can afford, don't give up on doing well in the class. Here are some ideas:
• Check the library. Some schools put copies of textbooks on reserve, and if you're lucky, you might get to check out a copy.
• Ask your prof to borrow a copy. Most professors receive at least one sample copy of the textbook.
• Buy an older edition (which are usually dirt cheap) and get the new book's page numbers and workbook questions from a friend.
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10. Advocate affordable alternatives. Finally, the only way to change textbook prices in the long run is to get the word out about less expensive textbooks. Free online "open textbooks" are available in dozens of common subjects. Make sure to let your professors know!
• Tell professors about the Open Textbook Catalogxxvii, which lists over 100 free open textbooks.
• Watch this video to learn about why open education matters: http://www.youtube.com/watch?v=gJWbVt2Nc‐I
• Check out our toolkit for running an open textbooks campaign on your campusxxviii
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NOTES
i Baum, Sandy, and Jennifer Ma. TRENDS in COLLEGE PRICING 2012. Rep. College Board Advocacy and Policy Center, 2012. Web.
Aug. 2013. ii Allen, Nicole. A COVER TO COVER SOLUTION. Rep. The Student PIRGs, Sept. 2010. Web. Aug. 2013. iii Legislative Services Agency. Fiscal Services Division. Fiscal Note: HF 2445. By Shawn Snyder. Mar. 2012. Web. Aug. 2013.
<https://www.legis.iowa.gov/DOCS/FiscalNotes/84_6093HVv0_FN.pdf>. iv Legislative Services Agency. Fiscal Services Division. Fiscal Note: HF 2445. By Shawn Snyder. Mar. 2012. Web. Aug. 2013.
<https://www.legis.iowa.gov/DOCS/FiscalNotes/84_6093HVv0_FN.pdf>. v Emrey‐Arras, Melissa. "College Textbooks: Students Have Greater Access to Textbook Information." United States Government
Accountability Office, June 2013. Web. Aug. 2013. <http://www.gao.gov/products/GAO‐13‐368>. vi Allen, Nicole. A COVER TO COVER SOLUTION. Rep. The Student PIRGs, Sept. 2010. Web. Aug. 2013. vii Find out more at http://www.studentpirgs.org/reports/ripoff‐101‐2nd‐edition viii Find out more at http://www.studentpirgs.org/sites/student/files/reports/A‐Cover‐To‐Cover‐Solution_4.pdf ix Find out more at http://sd06.senate.ca.gov/news/2012‐09‐27‐governor‐provides‐cost‐savings‐california‐college‐students x Find out more at http://www2.news.gov.bc.ca/news_releases_2009‐2013/2012AEIT0010‐001581.htm xi Find out more at http://www.opencourselibrary.org xii Allen, Nicole. Affordable Textboo Ks For Washington Students: An Updated Cost Analysis of the Open Course Library. Rep. The
Student PIRGs, Apr. 2013. Web. Aug. 2013. <http://www.studentpirgs.org/resources/updated‐cost‐analysis‐open‐ course‐library>.
xiii Read more at http://news.rice.edu/2013/05/02/rices‐openstax‐college‐doubles‐down‐on‐free‐online‐textbooks/ xiv Find out more at http://archive.inside.iastate.edu/2011/0127/text.php xv Read more at http://www.studentpirgs.org/sites/student/files/reports/A‐Cover‐To‐Cover‐Solution_4.pdf xvi Determined by multiplying university‐acquired enrollment numbers by the College Board’s estimated textbook budget for
the 2012‐2013 academic year. Read the College Board report at http://trends.collegeboard.org/sites/default/files/college‐pricing‐2012‐full‐report‐121203.pdf
xvii http://www.registrar.iastate.edu/enrollment xviii http://www.uiowa.edu/facts/enrollment/index.htm xix http://www.library.uni.edu/collections/special‐collections/uni‐fact‐sheet#Enroll xx https://www.drake.edu/admission/undergraduate/classprofile/ xxi http://www.luther.edu/ir/enrollment/2012_13/ xxii http://www.grandview.edu/aspx/audience/content.aspx?pageid=281&aid=12 xxiii http://www.grinnell.edu/admission/explore/glance/ xxiv http://alumni.dbq.edu/?udfastfacts xxv http://simpson.edu/about‐simpson/quick‐facts/ xxvi Find out more about the American Opportunity Tax Credit at http://www.textbookaid.org/ xxvii Find out more at http://open.umn.edu/ xxviii Get the toolkit here: http://www.studentpirgs.org/resources/textbooks‐project‐packet
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