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Michelson 20MM

Understanding the Student Experience of Automatic Textbook Billing

Michelson 20MM has released a survey report shedding light on the impacts of automatic textbook billing programs on students across the US. The report, Understanding the Student Experience of Automatic Textbook Billing: A Small-Scale Student Survey, surfaces alarming trends in textbook purchasing experiences of college students, spotlighting the urgent need for enhanced consumer protections in a market that uniquely impacts students as “captive consumers.”

Key Findings:

  • More than half of students believe automatic textbook billing does not save them money, yet remain enrolled in the program due to a lack of clarity around other options, not being able to access their homework outside of the program, or concerns about not being able to use financial aid outside of the program.
  • Three-quarters of students experienced some level of confusion or miscommunication around their ability to opt out of automatic textbook billing. This is a systemic issue in the implementation of automatic billing programs that limit students’ autonomy over their financial choices related to educational materials.
These findings raise serious concerns if students are “free to make the choices they regard as in their own best interests as consumers,” as Congress required.

The dominance of a few major publishers and the consolidation of college bookstore vendors have driven up costs. With textbook sellers pushing new billing models as the answer to the accessibility crisis, models created by those who profit from them deserve added scrutiny. This survey comes on the heels of a new Student PIRG report that found uncertain savings, high quotas, and commission payments for participating colleges hidden in automatic textbook billing contracts. This affordability crisis makes student choice imperative as they navigate the significant financial barriers across the higher education ecosystem.

Michelson 20MM’s Recommendations for Action

  • Continued study of student preferences on course material procurement.
  • Enforcement of existing regulations that ensure transparency and fair pricing in textbook sales.
  • Shifting from “opt-out” to “opt-in” models for automatic textbook billing to ensure student choice.
  • Greater clarity and oversight so students fully understand their options around accessing their financial aid funds for course materials.

Publications

Report: Michelson 20MM
Understanding the Student Experience of Automatic Textbook Billing: A Small-Scale Student Survey
Author: Cailyn Nagle
Year: 2024 - Format: PDF