Testimony of Mr. Virgil Monroe
University of Wisconsin -- River Falls 

U.S. House of Representatives
Committee on Education and the Workforce
Subcommittee on 21st Century Competitiveness

 Hearing on
"Are College Textbooks Priced Fairly?"

July 20, 2004 

My name is Virgil Monroe. I manage Textbook Services at the University of Wisconsin-River Falls. I am very pleased to testify before the House Subcommittee on 21st Century Competitiveness. In my testimony today, I will describe our textbook rental service for students, the impact it has on the cost of their college education, how it was implemented on our campus, and how it is perceived by our students, faculty and administration. I will close with comments about textbook pricing and a short discussion of the feasibility of establishing textbook rental systems on other college campuses.

Textbook Services is a college textbook rental service which was established by the University of Wisconsin-River Falls to supply our students with college textbooks and other instructional materials in direct support of the curriculum. In exchange for a rental fee, paid as part of the student's tuition, we provide textbooks and other instructional materials to students under the direction of the faculty and the University administration.

Textbook Services is very much like a library. In fact, on this campus, it is a department of the University Library, supervised by the Director of Library Services. Textbooks are checked out at the beginning of the semester and then returned at the end of the semester, but we also give students the option to purchase any textbooks that they think will be of use to them in the future.

Our rental system is very popular with students. It is popular primarily because it saves students a significant amount of money each semester. For example, it is not unusual for a student in a book purchase system to spend $300 to $600 for texts each semester, and then to sell the texts back to the Bookstore or online, at the end of the semester, for $150 to $300. In our rental system, (full time) students pay a $59.00 per semester rental fee to checkout texts for the semester. Students check out an average of 7 textbooks each. If the texts are returned, undamaged, and by the due date, no further charges are levied. If students wish to purchase texts then they may purchase any text in our inventory during our semester book sale at a discount of 20-40% off the retail price. The amount of the discount depends on the age of the text.

By buying current texts at discounts of 20-40% and by buying discontinued texts (i.e. textbooks which are no longer used, have been replaced by a later edition, or a different text) at prices that range from 25¢ to several dollars per copy, students may develop a personal and professional library at minimal cost. I think it is incorrect to assert that a rental system discourages the development of a personal and professional library. In fact, it does just the opposite. We sell approximately 10,000 copies of current and discontinued texts to students each year. Each semester teaching faculty members receive a list of discontinued textbooks, in their subject areas, that are available for students to purchase. For many weeks after these lists are distributed, we have large numbers of students who come in to purchase discontinued texts. We also advertise our current and discontinued semester textbook sales in the student newspaper, on campus t.v., and in emails that we send to students each semester. So it is very easy and inexpensive for a student to establish a professional library.

As textbook prices continue to rise, prospective students, and their parents, are attracted to the University of Wisconsin - River Falls by the potential for saving money on textbooks. The textbook rental system also has the effect of bringing total college costs down to a more manageable level and this makes college more accessible, especially for poorer students.

In a student survey, which Textbook Services conducted in 1998, of the 417 students who responded to the survey question: "Do you think that Textbook Services is a valuable service for students?," 410 indicated that they thought it was. In the section of the survey reserved for written comments, 82 students wrote "Excellent, good, or great service for students," or a similar comment. 49 students wrote "Saves money, better than buying books," or a similar comment. Only one student wrote, " I would prefer to buy my books in the Bookstore."

A University of Wisconsin-System Audit of the seven Wisconsin based Textbook Rental Services, which was conducted from December 1998-September 1999, concluded that "... textbook rental programs provide a needed service while at the same time rendering measurable cost savings to students and the campus community. Overall, textbook rental operations are well managed...We have recommended (that) institutions without textbook rental explore the feasibility of providing some rental services…Textbook rental operations provide the convenience and flexibility needed by students, while at the same time helping control textbook costs and consequently shielding the students to some degree from ever-rising textbook prices."

Students like the control a rental system gives them. They may buy the texts they think will be of value to them in the future, in later classes or in their professions, but they are not forced to buy texts that they may never use again. Our students also have a voice, through the Textbook Services Advisory Committee, the Student Senate and the Fees and Facilities Board, in reviewing Textbook Services policies and procedures and in setting the textbook rental fee each year. So, I think our textbook rental system is perceived by most students as being a fairer system. In my experience, students who must buy their textbooks each semester have little or no voice in determining textbook prices.

Students also like our rental service because they do not have to decide whether or not the academic benefit they gain from buying copies of the texts for a particular class is worth the considerable financial cost. As I monitor class enrollment each semester and then compare enrollment to our textbook inventories, I see, almost invariably, everyone in the class has checked out the textbooks for the class. This is in contrast with textbook purchase systems where a percentage of students in the class may elect not to purchase the texts at all, others students in the class may wait until late into the semester -- until they realize they cannot get along without the texts -- to purchase the texts for the class. This percentage can reach 25% or more in some classes. Some students may elect to purchase a similar text at a lower price, and this can also cause problems.

In addition, students have the opportunity to check out, without additional charge, a second copy of a text, or texts from other classes. The ability to check out a second copy of the text can be very useful for students with disabilities and for students who may forget their texts at home on the day of a big test or when an important assignment is due. Each semester, we distribute 41,000 texts. The other 48,000 texts in our inventory are available for students to check out for review, for help in preparing papers and assignments, for looking forward to future classes, and for reference.

Faculty members like our rental system for most of the same reasons that students do. They appreciate the savings it offers to students. They know everyone in their classes will have the textbooks for the class. They can make assignments from and recommend texts that are used in other classes. Though faculty members do not support the rental system as uncritically as students, they are basically satisfied.

Our most recent faculty survey, conducted in Spring Semester 2000, indicated a medium to high level of faculty satisfaction with our rental service. We sent 337 surveys to teaching faculty; 77 completed surveys were returned. In response to the survey question, "Are you satisfied with our textbook ordering policies,?" 48 (62%) indicated that they were very satisfied, 24 (31%) indicated that they were satisfied, 0 (0%) indicated that they were dissatisfied, 0 (0%) indicated that they were very dissatisfied and 5 (7%) did not respond to the question. In response to the question, "Is our textbook collection adequate for the classes you teach,?" 42 (55%) indicated that the collection is very adequate, 35 (45%) indicated that the collection is adequate, 0 (0%) indicated that collection is inadequate and 0 (0%) did not respond to this question.

In the section of the faculty survey reserved for written comments, 14 faculty members wrote, "The rental system is great, keep up the good work.," or words to that effect. 6 faculty members wrote that they would like us to purchase new texts instead of used texts. 2 faculty members wrote indicated that they would like students to purchase texts instead of renting them. In our 1997 faculty survey, one faculty member wrote, "(I) should be able to change books as (often as) necessary and (have) as many (titles) as necessary for each course." Another wrote, "Too many used books are purchased, we lose out on extra perks from publishers." Another faculty member wrote, "Too many books are in poor condition.," and another wrote, "Discard books that are in worn condition or written in."

In a letter to the Faculty Senate, dated 10/29/99, a faculty member wrote, "Faculty need greater flexibility in adapting to an ever changing world of information in their respective fields. Students who leave this institution need to have established a library to which they can refer as a foundation in their field…It's time we join the rest of the academic institutions in the state and nation which have university bookstores…"

The letter and the survey comments effectively summarize the main problems and concerns that a relatively small number of the teaching faculty have with our textbook rental system. We have sought to address these concerns, but we have not always been successful. To be financially viable, we have established a minimum two year use period for textbooks, we occasionally have to limit the number of titles that we can supply for a class, and our textbooks become worn, marked and highlighted when they have been used repeatedly. I do think, though, that we offer a very good opportunity for students to develop a personal and professional library.

In 1995, a subcommittee of the Faculty Senate evaluated all campus student support services in terms of their importance to the mission of the University, their contribution to student academic success, and their effectiveness in providing service to students and faculty. Textbook Services was ranked number one among all student support service departments. In their report to the Chancellor the committee wrote: "This program is a model of efficiency and effectiveness because of: 1. Its high level of service. 2. It uses survey data to improve and refine services. 3. It is oriented to serve students as cost-effectively as possible. 4. It is highly efficient in getting texts, distributing texts, and retrieving texts. 5. It operates at a very reasonable cost. 6. It maintains a clear focus and single function."

Is the rental system feasible for other Universities who currently have book purchase systems? Possibly, but there are several hurdles to overcome.

A textbook rental system is very expensive to establish and there is very little financial return on investment. With most Universities struggling to make do with static or reduced revenues from taxes, they do not have the revenue necessary, without taking money from other University programs, to make the initial, large textbook purchases that are necessary in order to establish a textbook rental system .

Once the program is in place, it is self supporting and may even be able to generate some revenue for other University programs. At the University of Wisconsin-River Falls, our textbook rental program currently provides $10,000 per year in revenue to the University Library and $19,000 per year in revenue to other University programs. Admittedly, this is a small amount when compared with typical revenues that the University collects from a textbook purchase system.

In order to reduce the financial impact to their other programs, Universities seeking to establish a rental system may want to phase it in gradually, beginning with Freshman and Sophomore level classes, as texts for these classes are generally less expensive.

The University administration must be willing to give up a significant source of revenue. Whether the University owns the Bookstore or leases it to an independent company, a portion of textbook sales on most University campuses makes its way into the University's general revenues and is used to help cover the cost of University programs.

The program must have strong support from the teaching faculty. In order for the textbook rental system to be financially viable, professors must agree to use a text for at least two years from the date of its adoption. Though exceptions may be made in areas where information changes rapidly and where a new or different professor begins teaching the class, the textbook rental system is less flexible, less forgiving, than book purchase systems, where, in many cases, the text may be changed each semester if desired.

In order to avoid getting stuck with a bad text, professors must be willing to devote time and research into the selection of a text and new professors may need to seek help from their older colleagues and from their department chairs. The result of more time spent in the selection process and better coordination among department members can pay real dividends, however, in the selection of a better text that is better integrated into the broad selection of courses that the department offers.

Student support is also critical, though much more easily achieved. Students are very concerned about the rising cost of textbooks and, judging from the many comments and requests for information about our rental service that I receive from students, from all over the country each year, they are looking for a means to help reduce the percentage of their college expenses that they spend on textbooks.

Students are justified in their concern about textbook prices. Textbook prices have been rising rapidly. Some of our commonly used texts have a retail price of over $120 per copy. The recent years of very low inflation rates, nationally, do not seem to have affected the rate at which textbook prices are rising.

Many times the same textbooks we are using are for sale in college bookstores in England, Europe and Asia for much lower prices. The introductory calculus text that we use on our campus retails for $130 in the United States; its' retail price in England is $75.

Students think that the rapid production of new editions, especially of texts that are used in entry level and lower level classes, is designed to inhibit the sale of used textbooks and keep textbook prices high. There does seem to be some justification for this belief. Rapid edition changes in lower level classes, where enrollment is high, but where information generally does not change as rapidly, far outpace edition changes in higher level classes, where enrollment is low, but information generally changes more rapidly. When publishers representatives come to visit they never ask me what text is being used in Advanced Organic Chemistry, but they are very interested to know what text is being used in General Chemistry I.

Textbook Services is considered an asset by many other universities, faculty and students. I think the recommendations of the UW System audit reflect this. As Textbook Services Manager, I respond to frequent requests for information about Textbook Services from universities, faculty and students, all across the nation. Other universities are actively looking for a way to solve their significant problems with textbook purchase systems, and they are looking for innovative ways to deal with the rapidly increasing cost of a college education.

I wish I could say that we were very innovative in establishing a textbook rental system at The University of Wisconsin-River Falls, but in fact we have always had a textbook rental system here. That decision was made long ago before any of our current faculty, staff and administration had begun their service to the University. However, it is to the great credit of the current University faculty and administration that they have continued to support Textbook Services when it is now and has always been clear that a textbook purchase system would bring in more revenue for the University. This support, I believe, begins with a very sincere respect for student opinion, and a sincere concern for their academic and financial welfare.