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Open Education and Solving
  the Textbook Cost Crisis
     Open Education Week
     March 2012 • #openeducationwk


                Nicole Allen
             The Student PIRGs
        www.studentpirgs.org/textbooks
           nicole@studentpirgs.org
               twitter @txtbks


                                         studentpirgs.org
“Student loan debt
outpaced credit card debt
for the first time last year
and is likely to top a trillion
dollars this year.”




                             studentpirgs.org
Textbooks
cost HOW
much???




            studentpirgs.org
Popular
Calculus
Textbook



           studentpirgs.org
Popular
Physics
Textbook



           studentpirgs.org
Popular
Econ 101
Textbook



           studentpirgs.org
The current system
     is broken

                studentpirgs.org
Course materials
and supplies cost


 $1168
  per year
  - College Board

              studentpirgs.org
Textbooks vs. Inflation                    Prices are rising


                                           4 times
250%


200%
                     Textbooks
150%


100%


 50%
                             Inflation         inflation

                                            - Student PIRGs
 0%
       1989   1994    1999   2004   2009




                                                           studentpirgs.org
26% of tuition
@ public 4-year


72% of tuition
@ comm. College

           - GAO

              studentpirgs.org
7 in 10
students surveyed
hadn’t bought a
required text due
to cost

  - Student PIRGs

               studentpirgs.org
Publisher Practices
                6th Edition
                 $224.95
                       used 5th
                       edition
                       $81.78




                              studentpirgs.org
Publisher Practices


                   Statistics
           with CengageNOW Personal Tutor
           CD, Student Study Guide, InfoTrac 2-
           Semester Printed Access Card

                   $213.95




                                                  studentpirgs.org
Publisher Practices




                   only
                 $142.95




                           studentpirgs.org
Publisher Practices




                      studentpirgs.org
Market Failure

             studentpirgs.org
Normal Market
   Producer




  Consumer

                studentpirgs.org
Market Failure
      Publisher




Student       Professor


                          studentpirgs.org
Another Market Failure
          Rx Drug
          Company



Patient             Doctor


                             studentpirgs.org
“More ways to save
 than ever before”


                     studentpirgs.org
Used Books
• 75% the new cost
  in the bookstore
• 60% of the new
  cost online
• Buy from from
  friends, classmate
  s


                       studentpirgs.org
Renting
• 40% of the new
  cost per semester
• Online or on
  campus (new)
• Up-front
  savings, no
  buyback blues


                      studentpirgs.org
E-Books
• 50% of the new
 cost (in print)
• Usually a 180-day
  subscription
• Some limits on
  printing and
  access


                      studentpirgs.org
E-Readers
• Many different
  devices available
• Cost $379-
  $1000+
• Additional cost for
  content



                        studentpirgs.org
Average Savings
   E-Readers                                      39%

       E-Books                                      52%

        Rentals                                         61%

 Used Books                              25%

Source: www.studentpirgs.org/textbooks/research
                                                          studentpirgs.org
Student Preferences

                                                           25%
                    34%                                    Prefer
                      Rent All                             digital

       66%                                        75%
       Keep Some
                                                  Prefer
                                                   print




Source: www.studentpirgs.org/textbooks/research
                                                                     studentpirgs.org
Maximum Savings

    Rentals                                       33%


   E-Books                      8%


E-Readers              1%


Source: www.studentpirgs.org/textbooks/research
                                                   studentpirgs.org
We can do better
   than that.


                   studentpirgs.org
Open
O
Educational
E
Resources
R
              studentpirgs.org
“Educational materials
offered under a license
 allowing the public to
 freely use, adapt and
distribute the content”

                          studentpirgs.org
Homework



      OER
      Textbooks

                  studentpirgs.org
What does “open”
 actually mean?


                   studentpirgs.org
Open Licensing
 Standard       Open       Public Domain




All Rights   Some Rights   No Rights
Reserved      Reserved     Reserved

                                   studentpirgs.org
Open Licensing
Rights:                 Conditions:
• Freely use the        • All: Credit the author
  work                  • Some: Share under
• Adapt, remix, revis     same license
  e the content         • Some: Use must be
• Create and              not for profit
  distribute copies



                                             studentpirgs.org
Open Licensing
System of standardized open licenses
 www.creativecommons.org
    Attribution               Attribution No Derivs
    (BY)                      (BY-ND)



    Attribution Share-Alike   Attribution Non-
    (BY-SA)                   Commercial
                              (BY-NC)


    Attribution Non-          Attribution Non-
    Commercial Share-Alike    Commercial No Derivs
    (BY-NC-SA)                (BY-NC-ND)

                                                 studentpirgs.org
Open Textbooks



                 studentpirgs.org
Open
 Physics
 Textbook
OpenStaxCollege.org




                      studentpirgs.org
Open
 Calculus
  Textbook
OpenTextBookStore.org




                        studentpirgs.org
Open
Econ 101
  Textbook
FlatWorldKnowledge.com


                     $35 pdf
                               studentpirgs.org
Open Textbooks
Criteria 1: Quality
• Covers similar content, with
  exercises and illustrations

• Written and reviewed by experts

• Used at Harvard, Caltech, UCLA…

                                    studentpirgs.org
Open Textbooks
Criteria 2: Cost
• Freely available online to everyone

• Downloadable and printable at a
  low cost

• Hard copies typically cost $20-40
  and can be sold at the bookstore
                                    studentpirgs.org
Open Textbooks
Criteria 3: Fit
• Open license allows instructors to
  adapt the text to fit the class

• Update in real time (but no
  unnecessary new editions)


                                   studentpirgs.org
Maximum Savings
Open Textbooks                                    80%

               Rentals                      33%

              E-Books              8%

          E-Readers             1%

Source: www.studentpirgs.org/textbooks/research
                                                    studentpirgs.org
Savings from switching
            to open textbooks.
            Physics           Calculus            Economics
          185 Students       150 Students         90 Students




           $24,575             $20,115             $10,114
          4 Years Tuition     Down Payment        $75,000 401(k)
          At Iowa State       On First Home        after 40 years



Source: www.studentpirgs.org/textbooks/research
                                                                    studentpirgs.org
Publisher




Student       Professor


                   studentpirgs.org
Publisher




Student       Professor


                   studentpirgs.org
What’s the catch?




                    studentpirgs.org
What’s the catch?

     There isn’t one.*
* Obviously there are still some challenges.



                                               studentpirgs.org
OER Models
Individuals
• Wider distribution of
  work
                          Robert Beezer
• Sabbatical projects     “The world didn’t need
                          another linear algebra
                          book. It needed a free
• Personal motivation     one.”
                          linear.ups.edu


                                            studentpirgs.org
OER Models
Institutions
• Pool resources with
                        Community College
  other colleges with   Consortium for OER
  similar needs         More than 200 colleges
                        working to review,
• Provide support to    create and promote
                        OER.
  faculty who use OER   oerconsortium.org

• Pass OER policies
                                            studentpirgs.org
OER Models
Institutions
• Pool resources with
                        University of Minnesota
  other colleges with
                        Creating an online
  similar needs         catalog of reviewed
                        open textbooks, and
• Provide support to    providing support to
                        faculty
  faculty who use OER   open.umn.edu

• Pass OER policies
                                          studentpirgs.org
OER Models
Institutions
• Pool resources with
                        UMASS Amherst
  other colleges with   Libraries
  similar needs         Provided small grants
                        to faculty to help
• Provide support to    transition to OER,
                        saved students $72,000
  faculty who use OER   per year!

                        open.umn.edu
• Pass OER policies
                                         studentpirgs.org
OER Models
Foundations
• Grants or prizes to
  OER authors

• Support the
  development of
  sustainable models


                        studentpirgs.org
OER Models
Government
• Invest in “generic”
                         WA recently launched
  OER content that       OER library for its 81
  can be localized       largest courses.
                         The 1st year will save
• Require open license   students $1.3 million.
  for all taxpayer
                         opencourselibrary.org
  funded resources

                                          studentpirgs.org
OER Models
Government
• Invest in “generic”
                         US Dept. of Labor
  OER content that       created $2 billion
  can be localized       grant program to
                         improve job training.
• Require open license   The first wave of
  for all taxpayer       grants required a CC
                         BY license on all
  funded resources       materials created.

                                          studentpirgs.org
OER Models
Publishers
• Lots of room for
                        Non-profit publishing
  improvement on        effort (Rice Univ.)
  traditional model     Grant funding and
                        support from for-
• Business models       profit partners.
  built around books    OpenStaxCollege.org

  rather than on them

                                              studentpirgs.org
OER Models
Publishers
• Lots of room for
                        Commercial open
  improvement on        textbook publisher
  traditional model     Revenue (incl.
                        royalties) from
• Business models       selling optional print
                        copies, study aids.
  built around books
  rather than on them   flatworldknowledge.com



                                           studentpirgs.org
Student PIRGs
campaign 2003-2012



                 studentpirgs.org
Exposing the Problem
Campaign Activities
• 8 studies on various
  elements of the
  issue
• 1,000+ media hits
  over the last 8 years
• Congressional
  investigation


                          studentpirgs.org
Organizing Faculty
Campaign Activities
• 700 prof letter on
  new editions
• UCLA math dept
  negotiated 25% cut
• 23-campus Calstate
  faculty resolution



                       studentpirgs.org
Price Disclosure Laws
Campaign Activities
• Passed laws in
  WA, OR, CT, AZ, CA
 (sort of)

• Passed federal law
  in 2008, took effect
  Jul 1, 2010




                         studentpirgs.org
Price Disclosure Laws
          Higher Education
          Opportunity Act
          • Publishers must disclose
            prices to professors
          • Publishers must offer books
            unbundled
          • Colleges must list books
            during registration



                                       studentpirgs.org
Promote Alternatives
Campaign Activities
• 3,000 profs signed
  statement endorsing
  open textbooks
• Student “marketing”
  force met with over
  2,000 professors
• Open textbook catalog


                          studentpirgs.org
studentpirgs.org
Questions/Discussion



                  studentpirgs.org
Open Education and Solving
  the Textbook Cost Crisis
     Open Education Week
     March 2012 • #openeducationwk


                Nicole Allen
             The Student PIRGs
        www.studentpirgs.org/textbooks
           nicole@studentpirgs.org
               twitter @txtbks


                                         studentpirgs.org

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2012-03-06 Open Education and Solving the Textbook Cost Crisis

  • 1. Open Education and Solving the Textbook Cost Crisis Open Education Week March 2012 • #openeducationwk Nicole Allen The Student PIRGs www.studentpirgs.org/textbooks nicole@studentpirgs.org twitter @txtbks studentpirgs.org
  • 2. “Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year.” studentpirgs.org
  • 3. Textbooks cost HOW much??? studentpirgs.org
  • 4. Popular Calculus Textbook studentpirgs.org
  • 5. Popular Physics Textbook studentpirgs.org
  • 6. Popular Econ 101 Textbook studentpirgs.org
  • 7. The current system is broken studentpirgs.org
  • 8. Course materials and supplies cost $1168 per year - College Board studentpirgs.org
  • 9. Textbooks vs. Inflation Prices are rising 4 times 250% 200% Textbooks 150% 100% 50% Inflation inflation - Student PIRGs 0% 1989 1994 1999 2004 2009 studentpirgs.org
  • 10. 26% of tuition @ public 4-year 72% of tuition @ comm. College - GAO studentpirgs.org
  • 11. 7 in 10 students surveyed hadn’t bought a required text due to cost - Student PIRGs studentpirgs.org
  • 12. Publisher Practices 6th Edition $224.95 used 5th edition $81.78 studentpirgs.org
  • 13. Publisher Practices Statistics with CengageNOW Personal Tutor CD, Student Study Guide, InfoTrac 2- Semester Printed Access Card $213.95 studentpirgs.org
  • 14. Publisher Practices only $142.95 studentpirgs.org
  • 15. Publisher Practices studentpirgs.org
  • 16. Market Failure studentpirgs.org
  • 17. Normal Market Producer Consumer studentpirgs.org
  • 18. Market Failure Publisher Student Professor studentpirgs.org
  • 19. Another Market Failure Rx Drug Company Patient Doctor studentpirgs.org
  • 20. “More ways to save than ever before” studentpirgs.org
  • 21. Used Books • 75% the new cost in the bookstore • 60% of the new cost online • Buy from from friends, classmate s studentpirgs.org
  • 22. Renting • 40% of the new cost per semester • Online or on campus (new) • Up-front savings, no buyback blues studentpirgs.org
  • 23. E-Books • 50% of the new cost (in print) • Usually a 180-day subscription • Some limits on printing and access studentpirgs.org
  • 24. E-Readers • Many different devices available • Cost $379- $1000+ • Additional cost for content studentpirgs.org
  • 25. Average Savings E-Readers 39% E-Books 52% Rentals 61% Used Books 25% Source: www.studentpirgs.org/textbooks/research studentpirgs.org
  • 26. Student Preferences 25% 34% Prefer Rent All digital 66% 75% Keep Some Prefer print Source: www.studentpirgs.org/textbooks/research studentpirgs.org
  • 27. Maximum Savings Rentals 33% E-Books 8% E-Readers 1% Source: www.studentpirgs.org/textbooks/research studentpirgs.org
  • 28. We can do better than that. studentpirgs.org
  • 30. “Educational materials offered under a license allowing the public to freely use, adapt and distribute the content” studentpirgs.org
  • 31. Homework OER Textbooks studentpirgs.org
  • 32. What does “open” actually mean? studentpirgs.org
  • 33. Open Licensing Standard Open Public Domain All Rights Some Rights No Rights Reserved Reserved Reserved studentpirgs.org
  • 34. Open Licensing Rights: Conditions: • Freely use the • All: Credit the author work • Some: Share under • Adapt, remix, revis same license e the content • Some: Use must be • Create and not for profit distribute copies studentpirgs.org
  • 35. Open Licensing System of standardized open licenses www.creativecommons.org Attribution Attribution No Derivs (BY) (BY-ND) Attribution Share-Alike Attribution Non- (BY-SA) Commercial (BY-NC) Attribution Non- Attribution Non- Commercial Share-Alike Commercial No Derivs (BY-NC-SA) (BY-NC-ND) studentpirgs.org
  • 36. Open Textbooks studentpirgs.org
  • 38. Open Calculus Textbook OpenTextBookStore.org studentpirgs.org
  • 39. Open Econ 101 Textbook FlatWorldKnowledge.com $35 pdf studentpirgs.org
  • 40. Open Textbooks Criteria 1: Quality • Covers similar content, with exercises and illustrations • Written and reviewed by experts • Used at Harvard, Caltech, UCLA… studentpirgs.org
  • 41. Open Textbooks Criteria 2: Cost • Freely available online to everyone • Downloadable and printable at a low cost • Hard copies typically cost $20-40 and can be sold at the bookstore studentpirgs.org
  • 42. Open Textbooks Criteria 3: Fit • Open license allows instructors to adapt the text to fit the class • Update in real time (but no unnecessary new editions) studentpirgs.org
  • 43. Maximum Savings Open Textbooks 80% Rentals 33% E-Books 8% E-Readers 1% Source: www.studentpirgs.org/textbooks/research studentpirgs.org
  • 44. Savings from switching to open textbooks. Physics Calculus Economics 185 Students 150 Students 90 Students $24,575 $20,115 $10,114 4 Years Tuition Down Payment $75,000 401(k) At Iowa State On First Home after 40 years Source: www.studentpirgs.org/textbooks/research studentpirgs.org
  • 45. Publisher Student Professor studentpirgs.org
  • 46. Publisher Student Professor studentpirgs.org
  • 47. What’s the catch? studentpirgs.org
  • 48. What’s the catch? There isn’t one.* * Obviously there are still some challenges. studentpirgs.org
  • 49. OER Models Individuals • Wider distribution of work Robert Beezer • Sabbatical projects “The world didn’t need another linear algebra book. It needed a free • Personal motivation one.” linear.ups.edu studentpirgs.org
  • 50. OER Models Institutions • Pool resources with Community College other colleges with Consortium for OER similar needs More than 200 colleges working to review, • Provide support to create and promote OER. faculty who use OER oerconsortium.org • Pass OER policies studentpirgs.org
  • 51. OER Models Institutions • Pool resources with University of Minnesota other colleges with Creating an online similar needs catalog of reviewed open textbooks, and • Provide support to providing support to faculty faculty who use OER open.umn.edu • Pass OER policies studentpirgs.org
  • 52. OER Models Institutions • Pool resources with UMASS Amherst other colleges with Libraries similar needs Provided small grants to faculty to help • Provide support to transition to OER, saved students $72,000 faculty who use OER per year! open.umn.edu • Pass OER policies studentpirgs.org
  • 53. OER Models Foundations • Grants or prizes to OER authors • Support the development of sustainable models studentpirgs.org
  • 54. OER Models Government • Invest in “generic” WA recently launched OER content that OER library for its 81 can be localized largest courses. The 1st year will save • Require open license students $1.3 million. for all taxpayer opencourselibrary.org funded resources studentpirgs.org
  • 55. OER Models Government • Invest in “generic” US Dept. of Labor OER content that created $2 billion can be localized grant program to improve job training. • Require open license The first wave of for all taxpayer grants required a CC BY license on all funded resources materials created. studentpirgs.org
  • 56. OER Models Publishers • Lots of room for Non-profit publishing improvement on effort (Rice Univ.) traditional model Grant funding and support from for- • Business models profit partners. built around books OpenStaxCollege.org rather than on them studentpirgs.org
  • 57. OER Models Publishers • Lots of room for Commercial open improvement on textbook publisher traditional model Revenue (incl. royalties) from • Business models selling optional print copies, study aids. built around books rather than on them flatworldknowledge.com studentpirgs.org
  • 59. Exposing the Problem Campaign Activities • 8 studies on various elements of the issue • 1,000+ media hits over the last 8 years • Congressional investigation studentpirgs.org
  • 60. Organizing Faculty Campaign Activities • 700 prof letter on new editions • UCLA math dept negotiated 25% cut • 23-campus Calstate faculty resolution studentpirgs.org
  • 61. Price Disclosure Laws Campaign Activities • Passed laws in WA, OR, CT, AZ, CA (sort of) • Passed federal law in 2008, took effect Jul 1, 2010 studentpirgs.org
  • 62. Price Disclosure Laws Higher Education Opportunity Act • Publishers must disclose prices to professors • Publishers must offer books unbundled • Colleges must list books during registration studentpirgs.org
  • 63. Promote Alternatives Campaign Activities • 3,000 profs signed statement endorsing open textbooks • Student “marketing” force met with over 2,000 professors • Open textbook catalog studentpirgs.org
  • 65. Questions/Discussion studentpirgs.org
  • 66. Open Education and Solving the Textbook Cost Crisis Open Education Week March 2012 • #openeducationwk Nicole Allen The Student PIRGs www.studentpirgs.org/textbooks nicole@studentpirgs.org twitter @txtbks studentpirgs.org

Editor's Notes

  1. Although the problem has continued to grow worse and worse, it’s actually starting to get better in the short term because students have more ways to save.
  2. • Open textbooks are like traditional textbooks in many ways. • They are written by experts and reviewed, same kind of material. • Hard copies are even sold in bookstores.