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Tag: NPSAS

  • Welcome Change: OpenStax using more accurate data on student textbook expenditures

    Welcome Change: OpenStax using more accurate data on student textbook expenditures

    Last week OpenStax, the Rice University-based publisher of open educational resource (OER) materials, announced that according to their data more than 2.2 million students at 48% of colleges in the US and 1,150 outside the US are using OpenStax free textbooks, saving an estimated $177 million.

    This is compelling data in its own right, and we are working on analysis around this organization and its model, but somewhat buried in the press release is another significant statement around what students currently spend on textbooks and what savings are possible with OER.

    “Our community is creating a movement that will make a big impact on college affordability. The success of open textbooks like OpenStax have ignited competition in the textbook market, and textbook prices are actually falling for the first time in 50 years.”

    As a result of the unprecedented downward shift in textbook prices, OpenStax will be decreasing its estimated student savings figure from $98.57 to $79.37 based on federal data. The U.S. Department of Education’s National Center for Education Statistics published a study in May stating the average undergraduate student spent $555.60 on required course materials for the academic year. Dividing that number by seven courses (the undergraduate average, according to enrollment data) comes out to $79.37 in savings for each student using an OpenStax book.

    I have long argued that OER groups and others arguing for making college more affordable should use baseline numbers based on what students actually pay for textbooks, rather than the all-too-common $1,220 – $1,420 per year numbers from a misuse of College Board budget numbers (see chart at top of page 10 in this document). With OpenStax moving to new federal data showing $556 average expenditures, we should start to see more reliable estimates of student savings. Kudos to them.

    However, this level of student spending should not be a surprise to anyone following the curricular materials market.

    Our 2015 post “How Much Do College Students Actually Pay For Textbooks?”, as well as a follow-up post, show in detail that we have had data for years showing that students roughly $600 per year on textbooks and related course materials, and that that number has been falling since at least 2008. Using data from the National Association of College Stores (NACS), we knew three years ago about the rough level of spending and the multi-year decline. NACS has continued to release annual updates, with the most recent public release from last summer:

    NACS data showing course material expenditure

    What OpenStax refers to, however, is the new National Postsecondary Student Aid Study (NPSAS) restricted-use data from the US Department of Education’s National Center on Education Statistics, showing $555.60 average student expenditures per year. Which is right in line with the NACS data.

    We plan to explore the NPSAS data in more detail, as it provides rich data for crosstabs and exploration of student expenses. But for now, kudos to OpenStax for this change in student savings estimates, even if it is years overdue. I would hope that other OER advocates would follow their lead.

  • About the Diverging Textbook Prices and Student Expenditures

    This is part 3 in this series. Part 1 described the most reliable data on A) how much US college textbook prices are rising and B) how much students actually pay for textbooks, showing that the College Board data is not reliable for either measure. Part 2 provided additional detail on the data source (College Board, NCES, NACS, Student Monitor) and their methodologies. Note that the textbook market is moving into a required course materials market, and in the immediate series I use both terms somewhat interchangeably based on which source I’m quoting. They are largely equivalent, but not identical.

    Based on the most reliable data we have, the average college textbook prices are rising at three times the rate of inflation while average student expenditures on textbooks is remaining flat or even falling, in either case below the rate of inflation. Average student expenditures of approximately $600 per year is about half of what gets commonly reported in the national media. The combined chart comes from this GAO Report (using CPI data) and this NPR report (using Student Monitor data).

    Combined Chart

    Does this indicate a functioning market, and does this indicate that we don’t have a textbook pricing problem? No, and no. (more…)

  • Postscript on Student Textbook Expenditures: More details on data sources

    There has been a fair amount of discussion around my post two days ago about what US postsecondary students actually pay for textbooks.

    The shortest answer is that US college students spend an average of $600 per year on textbooks despite rising retail prices.

    I would not use College Board as a source on this subject, as they do not collect their own data on textbook pricing or expenditures, and they only use budget estimates.

    <wonk> I argued that the two best sources for rising average textbook price are the Bureau of Labor Statistics and the National Association of College Stores (NACS), and when you look at what students actually pay (including rental, non-consumption, etc) the best sources are NACS and Student Monitor. In this post I’ll share more information on the data sources and their methodologies. The purpose is to help people understand what these sources tell us and what they don’t tell us.

    College Board and NPSAS

    My going-in- argument was that the College Board is not a credible source on what students actually pay:

    The College Board is working to help people estimate the total cost of attendance; they are not providing actual source data on textbook costs, nor do they even claim to do so. Reporters and advocates just fail to read the footnotes.

    Both the College Board and National Postsecondary Student Aid Study (NPSAS, official data for the National Center for Education Statistics, or NCES) currently use cost of attendance data created by financial aid offices of each institution, using the category “Books and Supplies”. There is no precise guidance from DOE on the definition of this category, and financial aid offices use very idiosyncratic methods for this budget estimate. Some schools like to maximize the amount of financial aid available to students, so there is motivation to keep this category artificially high. (more…)