U.S. Senator Tina Smith Joins Colleagues to Prevent College Students from Being Billed For Textbooks Without Their Consent

WASHINGTON – U.S. Senator Tina Smith (D-MN) joined her colleagues Dick Durbin (D-IL), Angus King (I-ME), and Kyrsten Sinema (I-AZ) in sending a letter to the Secretary of Education Miguel Cardona urging him to finalize proposed changes that would make “Inclusive Access” (IA) and “Equitable Access” (EA) programs – models that allow institutions of higher education to automatically charge a student’s federal student aid for textbooks without a student’s consent – into an opt-in program, rather than an opt-out program.  Currently, colleges and universities can partner with textbook publishers like McGraw Hill, Pearson, and Cengage to deliver textbooks digitally, charging students in the process through IA and EA programs. Although IA and EA models are more affordable for students than the sticker price of a new, hardcover textbook, they are often still more expensive than open textbooks, used textbooks or rental options. And while students can opt-out of IA and EA programs, the opt-out process is often difficult to navigate and lacks transparency. 

“The Department’s proposed changes to the Cash Management regulations would eliminate an institution’s ability to automatically bill students for books and supplies, effectively shifting the textbook industry’s so-called ‘Inclusive Access’ and ‘Equitable Access’ programs from an opt-out model to an opt-in model.  This would allow students to choose how to spend their financial aid dollars on books and supplies.  It would empower them to take advantage of affordable alternatives, such as used and open textbooks,” the lawmakers wrote.

Senator Smith helped introduce the Affordable College Textbook Act and the Open-Textbook Pilot Program. The Pilot is a competitive grant program to support the creation and expansion of open college textbooks – textbooks that are freely available under an open license, allowing professors, students, researchers, and others to freely access the materials. Senator Smith helped secure $12 million in funding for the Open Textbook Pilot Program, based on the Affordable College Textbook Act, in the Fiscal Year (FY) 2023 Omnibus appropriations bill. The FY23 funding will bring the total federal investment in the Open Textbook Pilot to $47 million. It is estimated that projects supported by the Pilot to date will result in more than $250 million in eventual savings for students.

In their letter, the Senators wrote about the importance of the Pilot program and the necessity of expanding access to open textbooks and educational resources. 

“Students need more choices—not fewer—in the textbook marketplace so they can make the best decision for their own needs.  That is why we have worked to expand the use of open textbooks—education resources that are licensed under an open license and made available free of charge to the public—through the Department’s Open Textbook Pilot (Pilot) and the Affordable College Textbook Act,” the lawmakers continued.

The letter was also signed by U.S. Senators Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Jack Reed (D-RI), Ron Wyden (D-OR), Peter Welch (D-VT), Corey Booker (D-NJ), and Ed Markey (D-MA).

A copy of the letter is available here and below: 

April 19, 2024

Dear Secretary Cardona:

            We write to express our strong support for the Department of Education’s (Department) proposed changes to 34 CFR § 668.164(c) of the Cash Management regulations that would require institutions of higher education to obtain authorization from a student before deducting the cost of books and supplies from their federal financial aid.

            The cost of college, including the cost of textbooks and course materials, can put a postsecondary education out of reach for many students.  Students need more choices—not fewer—in the textbook marketplace so they can make the best decision for their own needs.  That is why we have worked to expand the use of open textbooks—education resources that are licensed under an open license and made available free of charge to the public—through the Department’s Open Textbook Pilot (Pilot) and the Affordable College Textbook Act.  The Pilot is projected to have saved students more than $250 million, and we thank the Department for its continued support of this program.

The Department’s proposed changes to the Cash Management regulations would eliminate an institution’s ability to automatically bill students for books and supplies, effectively shifting the textbook industry’s so-called “Inclusive Access” and “Equitable Access” programs from an opt-out model to an opt-in model.  This would allow students to choose how to spend their financial aid dollars on books and supplies.  It would empower them to take advantage of affordable alternatives, such as used and open textbooks.

Healthy competition in the textbook industry is important to drive down prices and expand innovations like open textbooks.  The Department’s proposed changes would be a meaningful step to promote more balance in the traditional textbook market, which has been dominated by increasing prices at the expense of students.

Thank you for your leadership on this important matter.  We look forward to continuing to work with the Department to make textbooks and course materials more affordable for students. 

Sincerely,

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