ITEM 000-0000-R0000
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May 22-23, 2015
ITEM [000-0000-R0000]
Affordable College Textbook Plan – University of Montana - Missoula
THAT
The Board of Regents authorizes a two-year pilot at UM: 1) to contract with Rafter, Inc. a total value
of $21 per qualified undergraduate student per credit hour to cover the cost of textbooks and
qualified materials, plus software and services to implement the program; 2) for the University to
add $1 per qualified undergraduates student per credit hour to a establish a liability fund for loss
coverage for any non-returned books; and 3) to add these costs as a mandatory fee for qualified
undergraduate students as the Affordable College Textbook Plan & Liability Fund.
EXPLANATION
1. This ITEM authorizes UM to contract with Rafter to provide, under a two-year pilot, the
technology software that will be used to collect textbook adoptions, procure these
materials, and manage this inventory end-to-end; Rafter will sub-contract with The
Bookstore at the University of Montana to provide operational support to collect
textbook adoptions; to manage the on-site logistics; and to provide physical space,
hardware, fixtures, and staff to operate the program.
2. This ITEM authorizes UM to establish a liability fund for loss coverage that will be used
to offset the cost of non-returned books; to further reduce liabilities, the University will
also place “holds” on accounts, e.g. students will not be able to receive transcripts,
etc., until unpaid charges are resolved. If less than $1 per credit hour is needed
for loss coverage, then this fee will be lowered.
3. This ITEM authorizes UM, under a two-year pilot, to apportion these costs and to bill
qualifying students a mandatory pass-thru fee for the Affordable College Textbook Plan
& Liability Fund for Loss Coverage; to specify any courses or programs that may be
excluded from the Plan; and to implement an opt-out process to grant exceptions on a
case-by-case basis for students when extenuating circumstances can be shown to exist.
(See Table 1 – Billing Plan)
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Table 1 – Billing Plan
Credit
Hours
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
+ 22
Affordable Collect
Textbook Plan *
(Paid by students to UM)
$21
$42
$63
$84
$105
$126
$147
$168
$189
$210
$231
$252
$252
$252
$252
$252
$252
$252
$252
$252
$252
$252
+ $21 per credit hour
Liability Fund
for Loss Coverage *
(Paid by students to UM)
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$12
$12
$12
$12
$12
$12
$12
$12
$12
$12
+ $1 per credit hour
(Paid by UM to Rafter)
$21
$42
$63
$84
$105
$126
$147
$168
$189
$210
$231
$252
$252
$252
$252
$252
$252
$252
$252
$252
$252
$252
+ $21 per credit hour
* Applies only to qualified students (see Attachment 1, Table 1 – Rollout Plan)
ATTACHMENTS
Attachment 1 – Affordable College Textbook Plan
Attachment 2 – Affordability Report on Course Materials
Attachment 3 – Frequently Asked Questions by Students, Faculty, & Staff
Attachment 4 – Planet Money, NPR Report: “Why Textbooks Prices Keep Climbing”
Attachment 5 – Endorsements
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Attachment 1
Affordable College Textbook Plan & Liability Fund
Contents
Section 1: Executive Summary – Background, Philosophy, & Key Benefits
Section 2: Principle Questions & Concerns
Section 3: Implementation Plan for Pilot Program
Section 1: Executive Summary – Background, Philosophy, & Key Benefits
(a) Problem
As many students will attest, the cost of textbooks continues to climb. According to
economic data from the U.S. Census Bureau and Bureau of Labor Statistics, prices are up
812% over the last 30 years. In comparison, the Consumer Price Index has gone up
251%, and healthcare costs have gone up 534% during the same time. Ultimately, the
prices increase comes down to a battle between students rationally trying to save on
out-of-pocket expenses, and publishers rationally trying to preserve profits as they face
increasing competitive pressure from the efficiencies in the after-market (e.g. Amazon)
for used books which has been a catalyst for these price increases. [For background,
see Attachment #4 – Planet Money, NPR Report: “Why Textbook Prices Keep Climbing”;
for more see ITEM 159-1004-R0513 – Attachment #2, approved May 23-24, 2013]
(b) Background
Members of the President's Cabinet together with ASUM leaders and leaders from the
Faculty Senate have been looking at this problem for a year, and in October, the ASUM
Senate passed a resolution asking the University to form a Steering Committee to
propose a plan for how to control textbook costs and create an even playing field in the
classroom for all students by providing equal access to all required textbooks.
(c) Current Impact on Students Outcomes
[Stats from campus on financial aid distributions, etc.]
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(d) Proposal
The Steering Committee composed of students, faculty, and administrators has
proposed the "Affordable College Textbook Plan” and “Liability Fund for Loss Coverage.”
The proposal, which is supported by members of the ASUM Senate and Faculty Senate,
calls for a two-year pilot with incoming students, with the option to extend for two
additional years if successful. The Plan would provide 100% of qualified students (see
Table 1, based on matriculation date and admission status), taking courses on the main
campus, with 100% of textbooks and qualifying materials for $21 per credit hour with a
“flat spot” at 12 credits for full-time students, saving the average undergraduate up to
29% or more. For loss coverage, an additional $1 per credit hour would be added for
the Liability Fund. [See Attachment 2 – Affordability Report on Course Materials]
Table 1 – Rollout Plan
Program Program
Year
Phase
Year 1
Pilot
Students Qualified for Plan
Year 2
Pilot
1st-time Freshmen
+ returning Sophomores
2016-2017
2015-2016
Year 3
Launch
(w/ renewal)
1st-time Students (including transfers)
+ returning Sophomores
+ returning Juniors
2017-2018
2016-2017
2015-2016
Year 4
Expand
(w/ renewal)
1st-time Students (including transfers)
+ returning Sophomores
+ returning Juniors
+ returning Seniors
2018-2019
2017-2018
2016-2017
2015-2016
1st-time Freshmen
Cohort by
Academic Year
2015-2016
(e) Textbook Affordability
Savings in the Plan are achieved in three ways: 1) through a "library" or "high school"type model for textbooks whereby, aside from items like workbooks and lab manuals
that are destroyed after their first use, students would return textbooks at the end of
the term for re-use by the next student; 2) by gaining efficiencies in the adoption and
procurement process through the use of upgraded back-office software and purchasing
services to administer the Plan; 3) by leveraging the scale of University's buying power
to negotiate better prices with publishers, distributors, and other content providers.
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(f) Student Outcomes
During the pilot period, the Plan would provide students with 100 % of their required
textbooks and published reading materials – print or digital – by the time class starts,
thereby creating equal access to learning materials and providing a more even
playing field to improve each student’s chance for success. Beginning on the first day
of classes, faculty will be able to focus on teaching, instead of waiting for students
who do not have all their required course materials.
(g) Financial Predictability
One of the University’s goals with this Plan is to reduce unplanned, unbudgeted outof-pocket expenses for textbooks which create barriers for students. By including
books on a student’s bill at a flat rate – like tuition, a meal plan, or other campus
service – the University will improve financial predictability and control price
inflation. Likewise, to ensure financial predictability for the University, a “Liability
Fund for Loss Coverage” will be established by collecting $1 per credit hour from
participating students to offset the cost of non-returned books. If less than that
amount is needed, then this fee will be lowered.
Section 2: Principle Questions & Concerns
(a) How does the Plan impact affordability?
The Provost & Vice President for Academic Affairs, the Vice President for Administration
& Finance, and the ASUM President requested an “apples-to-apples” report of textbook
options to compare the average textbook prices for University students under the Plan
versus what an average student pays today (see Attachment 2). The Report found that
approximately two thirds of students would pay less than they do today to acquire all
textbooks with the Plan, and approximately one third of students who can shop
exclusively online (*) would pay about the same, but would have fewer customer service
issues at the start of the term, and would receive books in a more timely manner.
Additionally, the Report showed that the Plan would provide an estimated savings of
approximately $100,000 during a two-year pilot with first-year students, and would
lower the Estimated Total Cost of Attendance by approximately 4% (excluding living and
personal expenses) for full-time undergraduates paying in-state tuition.
* Note: Veterans and students receiving financial aid in the form of vouchers, students
with disabilities, any students (23% of Fall enrollments) assigned “custom” textbooks
which are not typically carried by 3rd parties, as well as other segments of the student
population do not have the ability to acquire all of their required materials online.
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(b) How does the cost of the Plan impact students in different degree programs?
Like tuition and other fees, all full-time students pursuing an undergraduate bachelor
degree would be billed the same amount for the Plan, regardless of major, providing
students with the greatest latitude to explore any area of study. Relatedly, analysis
of the University’s course catalog and textbook adoptions, course enrollments by
discipline, and bachelor degrees granted by discipline found there to be substantial
normalization of textbook costs, regardless of major, across sciences (heavy book
usage), humanities (moderate book usage), and arts and communications (light book
usage). General education courses which require students to take a variety of core
courses across disciplines, and lighter / less expensive book usage across upper
division / elective courses are the primary reasons why the cost of textbooks for a
bachelor’s degree does not vary substantially for arts, humanities, or science majors.
(See Attachment 2 – Affordability Report of Course Materials)
(c) How does the Plan impact academic freedom?
The Affordable College Textbook Plan was designed to maintain academic freedom
for faculty. Faculty will be asked to adopt textbooks and other instructional
materials as they normally do, by submitting timely textbook adoption requests prior
to the start of each term. From a faculty perspective, the main change will be the
use of a new online adoption tool to collect textbook adoption requests. The
adoption tool will be the canonical source of information for all textbook adoptions,
as well as other group-assigned reading materials. Additionally, faculty will find that
all first-time Freshmen – and if the pilot is successful, eventually all undergraduates –
have their assigned materials so that instruction can begin the first day of class.
(d) How was a vendor (Rafter) selected to support the pilot?
The University reviewed the options available in the market and was unable to find any
services, other than Rafter’s program, that enable a program of this kind. Other service
providers to the college textbook industry – namely wholesale book companies (e.g.
Nebraska Book Company), textbook distributors (e.g. Ingram), virtual bookstores (e.g.
eCampus), point-of-sale system providers (e.g. Sequoia Retail Systems), specialized
point solutions (e.g. Verba Software), online retailers (e.g. Amazon), and lease operators
(e.g. Barnes & Noble College Stores) – do not offer a comparable program. A similar
program proposed here is offered by Follett Higher Education Group, but the Follett
program is only implemented on campuses where the college bookstore is leased by
Follett. That model does not fit the University because our bookstore is an independent
not-for-profit organization.
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Section 3: Implementation Plan for Pilot Program
To implement the Affordable College Textbook Plan, the University plans the following:
(a) Plan Coverage
Hardcover, paperback, ebooks, access codes, courseware, faculty-developed course
packs, and other published items given an ISBN, required by faculty for all students (i.e.
group assigned content) and not already included in other course fees are included in
the Affordable College Textbook Plan. Supplies such as art materials and sheet music
for individual performance, uniforms and equipment for field work, subscriptions to
periodicals, and software or parts for projects are not included in Plan.
(b) Phased Rollout
The University proposes a two-year pilot, which would include a phased rollout to begin
with all incoming first-time Freshmen students (based on matriculation date and
admission status), taking courses on the main campus in the 2015-2016 academic year,
beginning Fall term. If the pilot proves successful, the plan may be renewed for two
more years, and all incoming first-time students (including transfers) would be added to
the Plan each academic term thereafter until virtually all undergraduates are covered.
Students currently enrolled at the University would not be added to the Plan until such
time that the ASUM makes that request of the University. (See Attachment 1, Table 1).
(c) Student Billing
Student bills would include new fees per this proposal. All full-time undergraduates
taking 12-21 credit hours would pay a flat rate of $252 per student per term for the
Plan. All part-time undergraduates taking 1-11 credit hours would pay $21 for each
credit hour; undergraduates taking more than 21 credit hours would pay the full-time
flat rate of $252, plus $21 for each additional credit hour. For loss coverage, an
additional $1 per credit hour would be added for the Liability Fund (see ITEM, Table 1).
(d) Book Fulfillment
The University would contract with Rafter to provide the necessary technology,
procurement, and support services to launch and maintain the service. To manage onsite logistics, Rafter would sub-contract with The Bookstore at the University of
Montana to provide the logistical support to receive inventory, store materials securely,
assemble and distribute materials into individual packages for students, and later collect
and return to Rafter any materials that are not re-adopted.
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Attachment 2
Affordability Report on Course Materials
(a) The Provost & Vice President for Academic Affairs, the Vice President for Administration
& Finance, and the ASUM President requested an “apples-to-apples” report of textbook
options to compare the textbook prices for students under the Plan versus what an
average student pays today.
(b) Data sources for the study from Rafter was based on the University’s Fall 2014 textbook
adoptions, behavioral data from Student Watch (a national survey of 12,195 college
students with a margin of error +/- 0.89% at the 95% confidence interval) to quantify
shopping trends (i.e. % of students shopping online 3rd parties like Amazon vs. oncampus); new and used book prices from The Bookstore, and online prices for the same
titles found on seven different online marketplaces (e.g. Amazon, Chegg), representing
5,783 book sellers, which yielded 814,417 online price observations.
(c) Data was then weighted based on course enrollments, the proportion of textbooks
purchased on-campus at a bookstore vs. online (3rd party, e.g. Amazon), how many
textbooks are purchased versus rented according to student survey data, the condition
and format of books acquired (e.g. new, used, digital), and the average price by channel
(e.g. The Bookstore vs. Online (3rd Party) to calculate an average book price per channel;
finally, the weighted average price for a book was multiplied by the average number of
required books per term at the University based on the Fall adoption data.
(d) The Report found that approximately two thirds of students would pay less than they do
today to acquire all textbooks with the Plan, and approximately one third of students
who can shop exclusively online (*) would pay about the same, but would have fewer
customer service issues at the start of the term, and would receive books in a more
timely manner – even after accounting for the buyback option to sell books for their
residual value in cash. Additionally, the Report showed that the Plan would provide an
estimated savings of approximately $100,000 during a two-year pilot with first-year
students, and would lower the Estimated Total Cost of Attendance by 4-5% (excluding
living arrangements and personal expenses) for full-time undergraduates paying in-state
tuition. [* Note: Veterans and students receiving financial aid in the form of vouchers,
students with disabilities, any students (23% of Fall enrollments) assigned “custom”
textbooks which are not typically carried by 3rd parties, as well as other segments of the
student population do not have the ability to acquire all of their materials online.]
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Chart 1 – Average Price Students Would Pay to Acquire 100% of Required Textbooks
Current Situation
Proposed
~30% of students get books after classes start and
~43% have issues with online orders
100% of students get books
via pickup by class start
$375
$325
$275
~35%
~33%
~32%
100%
of students
of students
of students
of students
$392
$298
$225
$272
$250
$250
Online
(3rd Party)
UM "ACT" Plan
(Proposed)
$175
Publisher
Price
UM
Campus
UM & Online
(Average Student)
Key Takeaway: The Plan improves affordability for2/3 of students, maintains the same
level of affordability for others, and ensures all students have books when classes start.
Notes: Analysis of current costs does not include shipping costs for online (3rd Party)
orders, nor cash back from buyback option (see Chart 2); online offers (3rd Party) may
include used books in ‘acceptable’ condition, international editions, and editions not
intended for classroom use; students may incur additional costs to correct for these
issues; all used books at UM bookstore are in ‘good-or-better’ condition for classroom
use, and only U.S. editions are sourced unless otherwise specified by faculty – no price
adjustments have been made for these factors, nor additional loss coverage.
Sources: Student Watch™ survey, Fall 2013 (Data Tables, Page 36, 51) for book
sources, condition, and format; The Bookstore (UM Campus) prices & Rafter MINT
Service (Online 3rd Party) for prices; weighted average price per book multiplied by
average number of books per course for a full-time student at the University.
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Chart 2 – Average Price Students Would Pay Including Buyback Option, Excluding Shipping Costs
Current Situation
Proposed
~30% of students get books after classes start and
~43% have issues with online orders
100% of students get books
via pickup by class start
$375
$325
~35%
~33%
~32%
100%
of students
of students
of students
of students
$392
$275
$292
$225
$266
$244
$250
Online
(3rd Party)
UM "ACT" Plan
(Proposed)
$175
Publisher
Price
UM
Campus
UM & Online
(Average Student)
Chart 3 – Example of the cash an average student may receive by selling books based typical basket
Item
1
2
3
4
5
Format
Source
Offer
Purchase (old edition)
Online
< 25% of list
Textbook Rental (old edition)
Online
No offer
Purchase (custom edition)
Campus
No offer
E-book / Access Code (new edition)
Campus
No offer
[Textbook not acquired]
N/A
N/A
Subtotal (before weighting by student participation rate)
Total (after weighting by participation rate)
Cash Back
< $ 19
$0
$0
$0
N/A
< $19
$6
Key Takeaways: For the ~30%-35% of students who participate in buyback, the value
that students receive from selling back books has decreased over time as publishers
have responded to increased efficiencies in the used book market (see Item ITEM 1591004-R0513, Attachment #2); mitigating factors include 1) edition updates which
render old editions obsolete or diminish their residual value, 2) custom editions which
have little or no after market value, 4) binding-types (e.g. loose leaf) that are not
durable for reuse, 5) bundling (e.g. a textbook, plus workbook not sold separately), and
6) rental or subscription-based content models that expire.
Sources: Based on average list price / book of $78 for University of Montana adoptions
as reported above, Student Watch data on spending behaviors, published wholesale
price guides, and price observations from online marketplaces (e.g. Amazon, Chegg).
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Chart 4 – Book Buying Activity Before & After Classes Have Started
70%
7/1
7/8
7/15 7/22 7/29
8/5
30%
8/12 8/19 8/26
9/2
9/9
9/16 9/23 9/30
Key Takeaway: Nearly 1/3 of students are unprepared when classes start, and many
students still do not have required books one or more weeks later.
Source: University of Montana academic calendar, Rafter MINT Service, and data from
Student Watch™ report (Data Tables, Page 13)
Chart 5 – Percentage of students who had difficulties with an online order (including on-campus store)
Experienced Difficulties
57%
43%
No Difficulties
Key Takeaway: Many students experience difficulties with their textbook order while
trying to save money by ordering online.
Source: Student Watch™: Attitudes & Behaviors Toward Course Materials, Fall 2013 (Data
Tables, Page 10, What difficulties do students experience most often when ordering online??
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Chart 6 – Detail of difficulties experienced by students from an online order (including on-campus store)
51%
60%
50%
40%
30%
20%
13%
12%
11%
13%
10%
0%
Delay in delivery
Inacurrate
quality
description
Wrong textbook Problems with
delivered
refund
Other
Key Takeaway: Of the difficulties students experience with online orders, nearly 2/3
cause result in a delay before students have the books they need.
Source: Student Watch™: Attitudes & Behaviors Toward Course Materials, Fall 2013 (Data
Tables, Page 10, What difficulties do students experience most often when ordering online?)
Chart 7 – Estimated Student Savings
$2,000,000
$1,660,736
$1,500,000
First-years
$1,000,000
$500,000
Upperclasses
All Undergraduates
$116,248
$0
Year 1
Over 4 Years
Key Takeaway: The Affordable College Textbook Plan provides substantial savings.
Source: Annualized savings estimate if students acquired 100% of required materials
through current channels versus under the Affordable College Textbook Plan; excludes
additional loss coverage.
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Chart 8 – Impact of the Plan on the Estimated Total Cost of Attendance
Resident (2014-2015)
Tuition & Fees
Textbooks
Supplies
Educational Expenses
Current
Proposed
Change
$6,099
$784
$156
$7,039
$6,099
$504
$156
$6,759
-36%
-4%
Key Takeaway: The Affordable College Textbook Plan lowers the Estimated Total Cost
of Attendance for the University of Montana
Source: Annualized cost of tuition and fees from The Montana University System,
Inventory and Validation of Fees, Fall/Spring Semesters – Undergraduate Lower
Division for 2014-2015, and the proposed Affordable College Textbook Plan; excludes
living expenses, personal expenses, and additional loss coverage.
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Chart 9 – Percent of courses offered by area of study
Sciences (high book usage)
23%
43%
Humanities (moderate book usage)
Arts & Comms. (low book usage)
34%
Chart 10 – Percent of course enrollments by area of study
15%
Sciences (high book usage)
25%
Humanities (moderate book usage)
Arts & Comms. (low book usage)
60%
Chart 11 - Percent of bachelor degrees conferred by area of study
12%
Sciences (high book usage)
30%
58%
Humanities (moderate book usage)
Arts & Comms. (low book usage)
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Key Takeaways: Course offerings are fairly evenly distributed between arts (23%),
humanities (34%), and sciences (43%), but a large majority of enrollments (85%) and
degrees conferred (88%) are in the humanities and sciences; in 2012-2013 a total of
118 (6%) of bachelor degrees conferred were for Visual & Performing Arts.
Sources: Analysis of all undergraduate courses offered in University of Montana
Course Catalog and corresponding textbook adoptions, University of Montana Course
Schedule for Fall 2014, and the Program completions for 2012-2013 as reported to the
National Center for Education Statistics, U.S. Dept. of Education
Chart 12 - Estimated 4-year cost of textbooks by degree program with vs. without the Plan
Row #
Degree Program
Est. 4-year
Cost to
Incoming
Freshmen
Est. Savings
with Plan by
Degree
Bachelor
Degrees
Conferred
Textbook
Costs by
Degree
(lowest = #1)
1
Biological & Biomedical Sciences
$3,053
(53%)
111
(6%)
14
2
Business, Marketing, & Related Programs
$3,097
(55%)
348
(19%)
15
3
Computer Sciences & Related Programs
$2,467
(23%)
12
(1%)
7
4
Education
$2,463
(23%)
84
(5%)
6
5
Health Professions & Related Programs
$2,084
(4%)
46
(2%)
2
6
Journalism, Comms., & Related Programs
$2,708
(35%)
104
(6%)
10
7
Liberal Arts, General Studies, & Humanities
$2,022
(1%)
231
(13%)
1
8
Mathematics & Statistics
$3,006
(50%)
21
(1%)
12
9
Natural Resources & Conservation
$2,325
(16%)
185
(10%)
5
10
Parks, Recreation, & Fitness Studies
$2,469
(23%)
101
(5%)
8
11
Physical Sciences
$2,755
(38%)
37
(2%)
11
12
Psychology
$3,036
(52%)
136
(7%)
13
13
Public Administration & Social Services
$2,572
(29%)
65
(4%)
9
14
Social Sciences
$2,306
(15%)
245
(13%)
4
15
Visual and Performing Arts
$2,185
118
(6%)
3
$2,573 *
(9%)
–
1,844 (100%)
–
$2,016 *
(29%) *
–
–
Estimated 4-year cost (without ACT Plan)
Proposed 4-year cost (with ACT Plan)
* Weighted average based on awards by degree program
Key Takeaways: 1) Given continued price increases by publishers which have averaged
6-8% annual inflation each year since 1993 (source: economic data from the U.S.
Census Bureau and Bureau of Labor Statistics), the proposed Plan for incoming
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students is estimated to save the average student $573 over four years versus paying
“average basket prices” (i.e. the “average” student who shops the UM campus &
Online 3rd Party sources to acquire all materials); 2) all “average” students will be “as
good or better off” under the Plan, paying about the same or less, regardless of a
student’s chosen degree program, to acquire all materials; 3) general education
courses which require students to take a variety of core courses across disciplines, and
lighter / less expensive book usage across upper division / elective courses are the
primary drivers of textbook costs across degree programs for all students.
Notes: This analysis is based on general education requirements, major requirements, and
minimum graduation requirements as outlined in the University’s 2014-2015 Course Catalog.
Textbook costs are based on earning the minimum 120 credit hours to graduate and do not
include additional loss coverage; additional textbook costs that students may bear for credits
earned above the 120 credit hour minimum are not included – this may include students with
multiple majors, multiple minors, earning multiple degrees, seeking honors credentials, seeking
additional professional certificates or licensure. This analysis does not consider textbook costs
paid by students for credits earned at another institution, or alternate degree requirements for
students who already hold a bachelor degree and are seeking a second bachelor degree. Three
(0.2%) additional bachelor degrees were conferred in Multi-/Interdisciplinary Studies, but
insufficient adoption data was available for textbook cost analysis, so that degree program is
not included. Prices are based on the “average” student who shops the UM campus & Online
3rd Party sources because not all students have the ability to shop exclusively online to acquire
all required materials.
Sources: Analysis of all undergraduate courses offered in University of Montana
Course Catalog and corresponding textbook adoptions, University of Montana Course
Schedule for Fall 2014, and the Program completions for 2012-2013 as reported to the
National Center for Education Statistics, U.S. Dept. of Education.
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Attachment 3
Frequently Asked Questions by Students, Faculty, & Staff
Q&A for Students
(a) What materials are included in the Plan?
Hardcover, paperback, ebooks, access codes, courseware, faculty-developed course
packs, and other published items given an ISBN, required by faculty for all students (i.e.
group assigned content) and not already included in other course fees are included in
the Affordable College Textbook Plan. Supplies such as art materials and sheet music
for individual performance, uniforms and equipment for field work, subscriptions to
periodicals, and software or parts for projects are not included in Plan.
(b) What is the format of the books?
Books may be in print or electronic (ebook) format, depending on the format the
instructor adopts for the course. Some instructors may adopt both the print and
electronic formats for the same title, thus giving students the choice of which to use.
(c) What is the condition of the books?
Many books are brand new, and all used books are in good-or-better condition.
(d) What if I want to buy or keep a book?
You may keep any of the books you receive. Some books (e.g. workbooks & access
codes) will be yours to keep at no additional cost, and marked “Yours to Keep.” For
others that need to be returned, you would pay 50% of list price (i.e. the used book
wholesale price) to keep any book – a discount of 20-35% (or more) off the retail price
for used books. The purpose of this fee is strictly to cover the cost of replacing items for
the next student who may need it.
(e) May I write or highlight in the books?
Yes. But be kind to the next student who will get your book. A reasonable amount of
writing and highlighting is definitely ok – just don’t turn it into a work of art.
(f) What if I add or change a class?
If you add a class after you’ve picked up your other books, come to the bookstore to get
the books for your added classes as soon as 2 hours after you’ve added the class. If you
add a class and haven’t picked up your books; the books for your added class will be
ready for you when you pick up the rest of your books.
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(g) What if there aren’t enough books for everyone?
In the unlikely event that a book goes out-of-stock, a replacement will be ordered with
expedited delivery at no additional cost.
(h) What if I’m taking a course that continues spring term? Can I keep the same book?
Yes. As long as you’ve registered for the spring continuation course before returning
your books at the end of the fall term, you’ll be able to keep the book for the
subsequent term.
(i) What if I drop a class?
You will receive an email reminder to return the book to the bookstore or other
designated location.
(j) When do the books have to be returned?
Books need to be returned by the last day of finals, or within seven days of dropping a
course. You will receive email reminders to help you remember.
(k) What if I lose or forget to return a book?
You will be charged 50% of the list price (i.e. the used book wholesale price) so that the
book can be replaced. If you need a replacement book, your bookstore staff will
coordinate a replacement order.
(l) What if my book was accidentally damaged?
Some normal wear and tear is expected, but if the book is damaged to the point of not
being acceptable, you will be charged a non-returned item charge (50% of list price) and
you can keep the book.
(m) How do I find out the exact cost for keeping, losing, or damaging a book?
Your bookstore staff will be able to tell you the non-returned item charge for each of
your books at any time.
(n) Can I go online to view information on my course materials?
Yes. You may access your personal course materials dashboard online. Login details will
be made available before classes begin in the fall. You will also receive email
confirmations when you check out and return books.
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Q&A for Faculty
(a) As a member of the faculty, will I be told what books to adopt for a course?
Absolutely not. Academic freedom is a core principle of the program. The only time you
would be asked to consider a different adoption is if sufficient quantity to supply
students in your course is not available from publishers, distributors, wholesale book
companies, and/or the open market (e.g. a rare out-of-print book). As long adequate
supply of the item (new or used) is available, you may adopt it. If sufficient supply
cannot be validated, you will be consulted to see if you may know of an alternative
supply source, or to consider an alternate edition.
(b) What materials are included in the Plan?
Hardcover, paperback, ebooks, access codes, courseware, faculty-developed course
packs, and other published items given an ISBN, required by faculty for all students (i.e.
group assigned content) and not already included in other course fees are included in
the Affordable College Textbook Plan. Supplies such as art materials and sheet music
for individual performance, uniforms and equipment for field work, subscriptions to
periodicals, and software or parts for projects are not included in Plan.
(c) How do I adopt course materials?
Faculty and/or department assistants will be using a new online adoption tool to select
and submit your course materials. The dates of the adoption campaign will be
announced, and will conform to the typical timing of adoption campaigns already in
place, e.g. the Fall adoption campaign will start in April or May, and the Spring adoption
campaign will start in September or October. Training will be made available for those
who wish to learn more, though the tool is known for being intuitive and easy to use.
(d) What if the book I want to adopt isn’t in your catalog?
Easy, just add it. Faculty will be able to select from a catalog of over 10 million
nationally published items which is updated nightly with data feeds from publishers and
distributors, plus faculty will have the option to add any other items that may not be
published nationally including custom textbooks, self-published materials, course packs,
and other items instructors specify. If you can’t find the book you’re looking for, there is
a section in the adoption tool where you can enter the book’s information. Every effort
will be made to acquire the book of your choice.
(e) Can I adopt custom titles?
Yes. The adoption tool provides a place for you to enter custom materials.
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(f) Can I adopt ebooks, access cords, or courseware?
Yes. If the item is not already listed in our catalog, the adoption tool provides a place
for you to enter information about the digital item.
(g) Do I have to use the same edition for multiple terms?
No. There are no requirements for using the same edition of a book over multiple
terms. If you’re interested in using an older edition we are happy to provide it as long as
there is adequate supply of the book to cover your course enrollment.
(h) What if the book I want is out of print?
As long as there is sufficient supply of used books for that title, the book will be acquired
– even if the book is out-of-print. The only reason a books might not be acquired is if
there is not enough books to cover the enrollment for the course. In that case, someone
will work with you to identify an appropriate alternative.
(i) How do I get a desk copy of my book?
You will be responsible for acquiring your own desk copy and it is recommended you
work directly with the publisher of your textbook or purchase the book through a
retailer. This program does not include inventory to provide faculty with desk copies.
(j) How do you handle cross-listed courses?
Faculty members sometimes adopt identical textbooks for different courses. When it
comes time to distribute books to students, students will receive a single copy of any
cross-listed titles. If there is a special reason why a student would need a unique copy
for your course and an additional copy for any other courses, you may provide those
instructions with your adoption request.
Q&A for Staff
(a) What kind of system integration is required?
Setup of the program includes scheduling several standard reports from the student
information system related to the University’s course catalog / course section schedule
and student enrollments within those courses to assemble textbooks into packages for
pickup, (optionally) adding link(s) to the learning management system that will allow
faculty to auto-login to the textbook adoption tool, and link(s) for students to auto-login
to the student dashboard to access assigned e-books. Additional software will be
provided to The Bookstore to manage receiving, distribution, and returns, and a new
web-based textbook adoption tool will be provided to faculty and department assistants
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to submit textbook adoption requests. The adoption tool will be the canonical source of
information for all textbook adoptions, as well as other group assigned reading
materials as required to comply with Federal regulations.
(b) What costs are included in the proposed Plan?
The proposal includes all the costs that would be paid to Rafter for Rafter’s software
technology, procurement of adopted materials included under the Plan, on-site training
and support for one academic term as well as ongoing offsite support for the life of the
agreement. The proposal also includes all operation costs that The Bookstore would
bear as overhead to provide staff, space, and equipment to run the program.
(c) How are faculty ensured academic freedom and students financial predictability?
The Plan includes a set of “adoption guardrails” (i.e. reports on the cost drivers in the
overall catalog of adopted titles). The guardrails are simply a gauge, or “dials” set based
on three years of aggregated textbook adoption behaviors, plus a 10-20% “buffer” for
variance above historic patterns so faculty can do things like move to new editions,
change or add titles, or select digital instead of print format when they are ready to do
so – just as they have done for the last three years, with room to move higher. Faculty
are welcome to make any changes to their adoptions that they like. In the event that
the aggregate adoption behavior exceeds one or more guardrails, resolution is reached
through consultation about adoption alternatives, review of sourcing alternatives,
and/or incrementally adjusting the price of the Plan in future periods. In this way, the
guardrails are managed similar to an insurance plan with rate changes when the policy is
renewed based on coverage history.
(d) What happens if students do not return the books?
An itemized invoice will be provided to the University identifying students and materials
that were not returned after other automated inventory recovery efforts have been
exhausted. Typically, the non-return rate is 2-3% of the textbooks that are due. With
this report, the University may apply charges to student bills, e.g. a fee for 50% of list
price (i.e. the used book wholesale price) as a replacement charge. Unpaid charges will
result in account “holds” e.g. students will not be able to receive transcripts, etc.
(e) How many campuses does Rafter work with?
Rafter currently provides software and services to over 250 colleges and universities in
the U.S., including many mid- and large-size, Carnegie class public research institutions.
The same software and services used to manage the proposed Plan is has been
deployed at scale for many years on campuses across the country.
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(f) How is Rafter able to price the proposed Plan?
In 2014 Rafter introduced Rafter360, a flat-rate pricing model for a books-in-tuition
program. The pricing intelligence behind the model has been used to operate
BookRenter.com since its launch in 2006. BookRenter.com is the #2 online book rental
business after Chegg which is #1. Rafter has taken the pricing intelligence as well as
sourcing and liquidation efficiencies used to successfully manage its own textbook
portfolio worth millions of dollars, and applied the technology to help campuses provide
100% of students with 100% of books for a flat rate that saves the average student over
50% versus publisher prices.
(g) If the program is successful, how will prices change when the contract is renewed?
Price safeguards at the time of renewal may be included in the original contract at the
University’s request. The pricing presented in the Plan is not a “teaser” rate.
Adjustment for normal inflation pegged to the Consumer Price Index may be expected,
and there are also opportunities to bring prices down further depending preferences
expressed by faculty and students as the program is implemented.
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Attachment 4
Planet Money, NPR Report: “Why Textbook Prices Keep Climbing”
Listen (14 min, 56 sec):
http://www.npr.org/blogs/money/2014/10/03/353300404/episode-573-why-textbook-prices-keep-climbing
Transcript:
[A Student’s Perspective]
[NPR: David Kestenbaum]:
Since the very early days of Planet Money we have regularly
gotten emails from people asking us, “Please, please do a show
about this thing. This thing I had to buy that seems weirdly
expensive. Textbooks.
You got the textbook there?
[Kendell Redden, Student]
I do. Yeah, let me grab it. Yeah, it wasn’t cheap, that’s for sure.
[NPR: David Kestenbaum]
This is Kendell Redden and she goes to school at American River
College in California.
What’s it called? What’s the title? Can you read it?
[Kendell Redden, Student]
It is “College Physics.”
[NPR: David Kestenbaum]
And how much was the textbook?
[Kendell Redden, Student]
It was about 310 dollars.
[NPR: David Kestenbaum]
It was the most expensive book she’d ever seen. “Really,” she
thought, “310 dollars for a book with some online stuff?”
[Kendell Redden, Student]
So I was actually kind of irritated, you know? So I ended up, at
some point, I just needed the book. You know, we were starting
class, we were getting homework, and all the stuff. So, I just went
and… bought it. Put it on my credit card.
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[NPR: David Kestenbaum]
Kendell is not questioning the value of an education, or that in the
long run she’ll be earning more as a result of this class, and that
the price of the book will be a drop in the bucket. It just seemed
like a lot of money for what it was.
And something truly strange has been going on in the textbook
market.
There’s this chart that gets cited a lot. Maybe you’ve even seen it.
It’s from a government report on textbook prices and shows the
price of new textbooks over the past decade. And it is a very
steep line. The prices of new textbooks has been going up like
crazy. Faster than clothing, food, cars. Even health care.
Hello, and welcome to Planet Money. I’m David Kestenbaum.
[NPR: Jacob Goldstein]
And I’m Jacob Goldstein. Today on the show – by popular
demand – why are textbooks so expensive? We talk to students,
and textbook authors, and analysts, and publishers. And after all
that, we think we found a pretty satisfying answer.
[A Professor’s Perspective]
[NPR: Jacob Goldstein]
Let’s start with a guy named James Koch. He taught economics at
Old Dominion University for a long time, and he never thought
about the economics of textbooks until, at some point, students
started coming to him and asking, “Uh, excuse me, professor. Do
we really need this book you’ve assigned for class? It’s kind of
expensive.”
[NPR: Jacob Goldstein]
Kock said, “Yes. You need it. It’s a good book. But this got him
thinking about the odd nature of the textbook market.”
[NPR: David Kestenbaum]
One thing in particular struck him, which is that he was the one
who was choosing the books for class. He’d thought about it
carefully. The book was well written. He knew it was clear. He
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knew it had good problems at the end of the chapters. But he
realized that there was one key thing he did now know about it.
[Dr. James Koch, Professor] I did not know how much it cost.
[NPR: David Kestenbaum]
Normally, Kock says, the person deciding to buy something is also
the person paying for that thing. In this case, that relationship
was severed. The person choosing was not paying. Economists
call this the ‘principal-agent problem. The principal is the person
with the money. The agent is the guy figuring out how to spend
it. I call this the ‘someone else’s money problem – it’s someone
spending someone else’s money.
[NPR: Jacob Goldstein]
Is it really true that professors don’t think about price when they
are looking at textbooks for a class?
[Dr. James Koch, Professor] I’ve been in higher education now for about four decades, and I
never have had a single textbook sales person come into my office
and talk about price. They are always talking about, ‘Gee, we
have this new coverage with these new topics. We have this new
DVD. We have these ways that you can test students and give
them quizzes, and keep track of their progress. It’s always [about]
what’s in the textbook package, never about the price.
[NPR: David Kestenbaum]
It’s odd for a sales person not to talk about price.
[Dr. James Koch, Professor] Well, it’s not odd when you think that they are talking to a person
who doesn’t have to pay it.
[NPR: David Kestenbaum]
[Laughing] That’s the problem, huh?
[NPR: Jacob Goldstein]
This can lead to higher prices, really, in two different ways. I
mean, first the simple one is that publishers just have less of an
incentive to keep prices down to compete on price. But, the
second one is actually more interesting to me.
[NPR: Jacob Goldstein]
This market can lead to a fancier textbook than you’d get
otherwise. A textbook loaded up with stuff that students might
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not need, because remember, it’s the professor who’s the
customer. So, publishers will go to professors and say, “Hey, buy
our textbook. It comes with online quizzes and slides and a
workbook.” I mean, I remember when I was in college at the
back of the biology textbook there was this DVD sitting there that
I never once used, but I paid for it in the price of the book.
[An Author’s Perspective]
[NPR: David Kestenbaum]
I asked Cook about this particular economics textbook I happened
to have on my desk. It is the best-selling economics textbook in
America by Harvard economist, Greg Mankiw. You can buy it on
Amazon for 286 dollars and 36 cents”
So I asked Cook, “Does what you’re saying mean that Greg
Mankiw, your fellow economist, is making more money than he
should off this book?” It was an awkward question, but I had to
ask. Cook did not want to weigh in, so we did something more
awkward. We called up Greg Mankiw himself.
[Dr. Greg Mankiw, Author]
This is Greg Mankiw. I’m a professor of economics at Harvard
University.
[NPR: David Kestenbaum]
Let me just start by saying thank you for agreeing to come in and
be grilled about the price of your textbook.
[Dr. Greg Mankiw, Author]
[Laughing] It’s my pleasure, I think.
[NPR: David Kestenbaum]
I wanted to know – what did the author of an economics textbook
think about the very market that that textbook was in? The
principal-agent problem is right there in his book. It’s on page
462. So I ran the idea by him that professors who pick the books
aren’t paying attention to the price. He agreed this was not ideal.
But, he didn’t see it as a big problem.
[Dr. Greg Mankiw, Author]
Well, I don’t think it’s as unusual a market as you suggest. It think
there are lots of other markets that are similar. When you go get
a medical operation you are often relying on the advice of a
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doctor even though you or the insurance company is paying the
price. When you go get your car fixed you are relying on the
mechanic to pick out the parts for you. When you’re building a
new house or new extension on your house you are relying on
your contractor to find the right parts and look out for your best
interests. So, I think there are lots of situations when we rely on
someone else to help us make an informed decision, and certainly
the textbook market is that way.
[NPR: Jacob Goldstein]
I feel like the examples you chose – health care, paying a
contractor to work on your house, going to a mechanic – are all
the things that people hate paying for, for this reason. I mean,
people who get their homes renovated talk about what a
nightmare it is, and healthcare is this famously broken market.
[Dr. Greg Mankiw, Author]
Well, whenever you have a principal-agent problem there a risk
that the agent, who in this case is the professor, doesn’t do due
diligence – doesn’t do their job correctly – and doesn’t look out
for the best interests of the principal, which in this case is the
student. But a good professor would do that.
[NPR: Jacob Goldstein]
Mankiw says that professors do think a lot about what’s best for
the student.
[Dr. Greg Mankiw, Author]
The biggest expenditure for students is not the expenditure of
money, but it’s the expenditure of their time. They are spending a
lot of time in a course. They should spend a lot of time in the
course if they are going to get a lot out of it, and I want their time
to be used as productively as it can be, and giving them the best
book to read, that I can, is far more important than saving them a
few dollars. So, if somebody comes in and says, “I have a book
that’s not as good, but it’s going to save your students 30 dollars,”
then I’m going to say, “given that they are going to spend 40, 50,
60, 70 hours reading this book over the course of a semester, am I
really going to skimp on a textbook to get something that’s
inferior?” I don’t think so.
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[A Financial Analyst’s Perspective]
[NPR: David Kestenbaum]
So, OK, we have this theory about the ‘someone-else’s-money
problem’ driving up the cost for college textbooks. It makes
sense. But, it seems hard to test, right? We’d need some parallel
universe where the people choosing the textbooks were paying
for them so you could see what difference it makes.
[NPR: Jacob Goldstein]
Fortunately, that parallel universe exists. It’s called high school.
[NPR: David Kestenbaum]
Very nice.
[NPR: Jacob Goldstein]
High school textbooks are chosen and paid for by the local and
state governments. It turns out, that forces publishers to keep
the costs down. Jonathan Helliwell is a financial analyst at
Panmure Gordon [& Company], one of the oldest brokerages in
England. He says publishers earn much smaller profit margins on
high school textbooks than they do on college textbooks.
[Jonathan Helliwell, Analyst] School book publishers make about 5 to 10 percent profit
margins, and college textbook publishers make 20 to 25 percent
profit margins.
[NPR: David Kestenbaum]
And you think one reason is that the people picking the books
aren’t thinking about cost?
[Jonathan Helliwell, Analyst] I’d say that’s the biggest reason – who’s the customer and what’s
the buying process.
[NPR: David Kestenbaum]
Has anyone in the publishing business ever acknowledged to you
that they have this advantage – that the professors aren’t thinking
about cost?
[Jonathan Helliwell, Analyst] [Laughing hesitantly] They haven’t argued about it when I’ve put
it to them. Let’s put it that way.
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[Perspectives on Used Books]
[NPR: Jacob Goldstein]
The someone-else’s-money problem’ theory is powerful, but it
leaves out this one big thing that just about everybody we talked
to agreed was a major factor driving up prices, and it’s something
that oddly does not seem like it would make prices go up.
[NPR: David Kestenbaum]
It is the used textbook market. Twenty years ago the used book
market was local. Basically, you’d go to your college bookstore. If
they had a used copy, you could buy it. If not, you were stuck.
The Internet, of course, changed all that. Now when a student in
Florida finishes her class, and she can sell her book on EBay to
someone in Montana. Or, just get a book on Amazon. Here I’m
looking at the page from Mankiw’s textbook. New version – 286
dollars. Used – 227 dollars. If you don’t mind one that’s a few
years old, you can get the previous edition used for 26 dollars.
[NPR: Jacob Goldstein]
All this means that if you’re a publisher or a textbook author, you
have this really short window to make money off your book
because after the first semester, all the students who bought your
book are going to turn around and sell it to the next batch of
students.
[NPR: David Kestenbaum]
Robert Frank is an economist at Cornell who’s written a textbook
with former Fed Chairman, Ben Bernanke.
[Dr. Bob Frank, Economist]
It used to be, your new edition would come out, then the next
year it would sell half as many copies as the first year, and then
half again on the third year, and now you sell copies – if you sell
any at all – in the first year, and it’s done.
[NPR: Jacob Goldstein]
Nothing the next year?
[Dr. Bob Frank, Economist]
Almost nothing the next year.
[NPR: Jacob Goldstein]
So if you’re a textbook company faced with this problem, what do
you do? If you’re selling fewer books, how are you going to cover
your costs? Well, you raise prices.
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And this, it seems, is what textbook companies did. But, raising
prices just made things worse. People came up with new ways to
avoid those higher prices. Textbook rentals. Illegal downloads.
Some students just skipped buying books all together.
[NPR: David Kestenbaum]
Which meant that textbook companies were selling even fewer
books. So, they raised the price for new books again. You can see
where this is going. One textbook salesman I talked to called it “a
spiral of destruction.”
[NPR: Jacob Goldstein]
So, you have this battle. On the one hand, the price of new
textbooks going up and up and up. On the other hand, students
finding lots of ways around buying new full-priced books. Who’s
winning?
[NPR: David Kestenbaum]
Turns out there’s data on this. It comes from the National
Association of College Stores [a non-profit association that
conducts student research]. They do these student surveys asking
– how much do you actually spend on textbooks? We talked to
Rich Hershman there. He went through the numbers with us.
[NPR: Jacob Goldstein]
In 2007 how much did students spend?
[Rich Hershman, Research]
702 dollars.
[NPR: Jacob Goldstein]
2009, two years later?
[Rich Hershman, Research]
Our reported spending is 667 dollars.”
[NPR: Jacob Goldstein]
Oh, so it went down?
[Rich Hershman, Research]
Yes, it did.
[NPR: Jacob Goldstein]
2011?
[Rich Hershman, Research]
655 dollars.
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[NPR: Jacob Goldstein]
Down again. It went up a bit the next year, then down even
further.
[Rich Hershman, Research]
So what we’ve seen, essentially, is flat to declining spending from
what the students are saying they are spending on required
course materials of the last 5 to 6 years.
[NPR: Jacob Goldstein]
Students have basically fought the publishers to a draw on this
one.
[NPR: David Kestenbaum]
And yet, everyone seems to feel like they’re losing – students who
have to pay 300 dollars for a new physics textbooks, professors
who are hearing their students complain, textbook sales people
who once felt proud that they were helping further education but
are now embarrassed to be out selling these really expensive
books…
[A Publisher’s Perspective]
[NPR: David Kestenbaum]
…Which may be one reason why, when I finally sat down David
Levin, the president and CEO of one of the biggest textbook
companies around, McGraw Hill Education, he did not want to
talk about textbooks. I kept asking about books. He kept talking
about educational software. He saw it as a way out of this big
“spiral of destruction” and rising prices. Electronic, interactive
versions of textbooks.
[David Levin, Publisher]
We’ve got now 500 engineers building those – full-time – and
about 150 million dollars a year going into product creation. Your
grandfather’s textbook company didn’t do that. It sat astride a
business which was simple – produce books – and that’s what it
did. We are plowing huge resources into creating a new set of
instructional materials which help students and help instructors,
and do so at a much lower price than ever seen before.
[NPR: David Kestenbaum]
You really don’t want to talk about books anymore?
[David Levin, Publisher]
We don’t. This is not very interesting to us.
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[NPR: David Kestenbaum]
Digital textbooks are cheaper than traditional textbooks. Easy to
update. They don’t weigh anything. But for students, there is this
one big drawback – you can’t sell them back to the bookstore, or
anyone, at the end of the semester. There is not used market for
digital textbooks.
[NPR: Jacob Goldstein]
[Publishers] just have to find a way to keep students from
downloading them illegally.
[Addendum]
[NPR: David Kestenbaum]
Several of you, by the way, asked us to look into why there
seemed to be this constant stream of new editions of textbooks.
Were those really necessary, you asked, or just attempts to sell
more new copies? So we asked this question. Robert Frank, the
economist, told us that for the microeconomics textbooks he
writes he did not see any good reason why it to be updated as
often as it is. He said for macroeconomics you would want to
update it because there are things like the financial crisis that
happen.
[NPR: David Kestenbaum]
I also asked David Levin, the CEO of McGraw Hill Education about
new editions, in particular we were talking about a calculus
textbooks because – you know – the subject of calculus doesn’t
really change. He said he’d only been on the job for six months,
but the question clearly stuck with him because he later sent me
an email saying he’d looked into it. He told me they publish one
calculus book. It had last been updated in 2011, five years after
the previous edition. He said they added a bunch of new
problems and revised some parts of the text. But he wrote:
I can pretty much guarantee that we will never produce another
print edition of this book. [David Levin, Publisher]
[NPR: David Kestenbaum]
All right, I think that’s it.
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Episode 573:
Why Textbook Prices Keep Climbing
October 03, 2014 5:41 PM ET
About Planet Money
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Attachment 5
Endorsements
[Placeholder for endorsements from ASUM Senate, Faculty Senate, and/or other letters of support]