Van Hollen Joins Colleagues Durbin, King, Sinema, and Smith to Urge Department Of Education to Prevent Students From Being Automatically Charged for Course Materials

In a letter to the Secretary of Education, the Senators called on the Department to finalize proposed changes to the Cash Management regulations that would require institutions of higher education to receive authorization from a student before charging them for course materials

U.S. Senator Chris Van Hollen (D-Md.), Senate Majority Whip Dick Durbin (D-Ill.) and Senators Angus King (I-Maine), Kyrsten Sinema (I-Ariz.), and Tina Smith (D-Minn.) today sent 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 (IHEs) to automatically charge a student’s federal student aid for textbooks without a student’s consent – an opt-in program rather than an opt-out program.  Currently, IHEs 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 students can opt-out, the opt-out process is often difficult to navigate and lacks transparency.

“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 lawmakers wrote.

Continuing 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 Senators emphasized that students should have the freedom to shop around for books and supplies that best suit their academic needs rather than be forced into paying for resources they can access for free using open textbooks. 

“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,” the Senators wrote.  “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 Senators concluded their letter by reiterating that competition in the textbook industry will reduce costs for students and protect them from unfair charging practices.

“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,” the Senators concluded.

Joining Van Hollen, Durbin, King, Sinema, and Smith in sending today’s letter are U.S. Senators Richard Blumenthal (D-CT), 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,