Factlen ResearchZero-Cost DegreesEvidence PackJun 16, 2026, 10:10 PM· 4 min read· #2 of 2 in education

The Evidence Behind 'Zero Textbook Cost' Degrees: How Open Resources Are Reshaping Higher Education

A growing body of empirical research demonstrates that Open Educational Resources (OER) not only save students millions of dollars but significantly improve course completion and pass rates. As universities roll out entire 'Zero Textbook Cost' degree pathways, data suggests the model effectively closes equity gaps for low-income learners.

By Factlen Editorial Team

Higher Education Researchers 40%Institutional Policymakers 35%Clinical & STEM Faculty 25%
Higher Education Researchers
Focuses on the empirical data linking open materials to improved academic outcomes and closed equity gaps.
Institutional Policymakers
Focuses on the systemic rollout of ZTC degrees to drive enrollment, retention, and statewide cost savings.
Clinical & STEM Faculty
Focuses on maintaining rigorous academic standards and licensure pass rates through customized open materials.

What's not represented

  • · Commercial Textbook Publishers
  • · University Bookstore Operators

Why this matters

For millions of students, the cost of commercial textbooks is a hidden barrier that forces them to skip required reading and risk failing grades. The shift toward zero-cost degrees proves that universities can eliminate this financial burden while actually improving academic rigor and graduation rates.

Key points

  • Open Educational Resources (OER) save students millions while providing day-one access to course materials.
  • Data from over 21,000 students shows OER significantly reduces course withdrawal and failure rates.
  • Pell-eligible and low-income students see the largest academic gains from zero-cost materials.
  • Clinical programs using OER have maintained exceptional licensure pass rates, proving the rigor of open materials.
$75 million
Projected savings for Colorado students by Spring 2026
21,822
Students in the AAC&U efficacy study
10%
Increase in course completion rates at UNC
98%
NCLEX pass rate for the Open RN associate program

The rising cost of commercial textbooks has long been a hidden barrier in higher education, often forcing students to skip purchasing required materials at the expense of their grades. In response, a quiet revolution centered on Open Educational Resources (OER) and "Zero Textbook Cost" (ZTC) degrees has gained significant traction by 2026.[4]

OER refers to teaching and learning materials released under open licenses, allowing faculty to freely use, adapt, and distribute them. When an entire academic pathway replaces commercial textbooks with OER and library materials, it earns the ZTC designation.[6]

The most immediate impact of OER adoption is massive financial relief for students. State and institutional data reveal compounding savings as the programs scale from isolated pilot courses to fully integrated degree tracks.[2][6]

The Colorado Department of Higher Education reports that its state-funded OER grant program will surpass $75 million in cumulative student savings by the spring of 2026. Over 176,000 Colorado students enrolled in OER courses during the 2024-2025 academic year alone. Similarly, the University of Alberta announced that its ZTC initiative saved students over $30 million across three years, with nearly a third of all winter 2025 courses carrying the zero-cost designation.[2][6]

Statewide and institutional OER initiatives have generated tens of millions in cumulative student savings.
Statewide and institutional OER initiatives have generated tens of millions in cumulative student savings.

Beyond financial metrics, a robust body of peer-reviewed evidence indicates that OER adoption directly improves academic performance. The data challenges the historical assumption that free materials inherently compromise educational quality.[1][5]

A large-scale study by the Association of American Colleges and Universities (AAC&U) analyzing 21,822 students found that OER adoption significantly decreased "DFW" rates—the percentage of students receiving a D, F, or withdrawing from a course.[1]

A mixed-methods study from the University of Northern Colorado corroborated these findings, recording a 7% increase in course passing rates and a 10% increase in overall completion rates when faculty switched to openly licensed materials.[5]

The evidence is particularly strong regarding the impact of OER on historically underserved and low-income populations. By ensuring day-one access to materials, ZTC courses disproportionately benefit students relying on financial aid.[1][5]

The evidence is particularly strong regarding the impact of OER on historically underserved and low-income populations.

In the University of Northern Colorado study, Pell-eligible students enrolled in OER courses achieved a 100% completion rate, compared to a roughly 92% completion rate for Pell-eligible students in traditional courses. The AAC&U research similarly concluded that OER improves grades at greater rates for part-time and Pell-recipient students, directly addressing institutional attainment gaps.[1][5]

Data indicates that OER adoption disproportionately benefits Pell-eligible students, significantly boosting their course completion rates.
Data indicates that OER adoption disproportionately benefits Pell-eligible students, significantly boosting their course completion rates.

Skeptics of OER have historically questioned whether open materials can meet the rigorous standards required for clinical or STEM licensure. However, recent data from nursing programs suggests that customized OER can maintain or even elevate licensure outcomes.[3]

The Open RN project, which develops peer-reviewed nursing OER, tracked the outcomes of an associate degree nursing program that fully adopted its materials. Graduates of the program achieved a 98% pass rate on the NCLEX-RN licensure exam in the 2023-2024 academic year. Furthermore, courses using the Open RN pharmacology textbook saw a 5% higher successful completion rate compared to the state benchmark.[3]

Researchers attribute these academic gains to two primary mechanisms. First, the elimination of cost ensures that 100% of the class has access to the textbook on the first day of instruction, preventing early academic friction and missed assignments.[4][5]

Second, the open licensing of OER allows faculty to continuously update and customize the content. Rather than forcing a syllabus to match a static commercial textbook, educators can remix chapters, embed local context, and align the material perfectly with their specific learning objectives.[3][4]

The pedagogical advantage of OER stems from both immediate student access and the ability of faculty to customize content.
The pedagogical advantage of OER stems from both immediate student access and the ability of faculty to customize content.

Despite the strong efficacy data, the transition to ZTC degrees faces structural hurdles. Developing high-quality OER—particularly interactive STEM modules and adaptive homework platforms—requires significant upfront faculty time and institutional funding.[2][7]

Furthermore, while course-level data is robust, longitudinal studies tracking the impact of full ZTC degree pathways on multi-year graduation rates remain limited. Institutions are only now beginning to mandate the standardized labeling of ZTC courses, which will eventually allow researchers to track cohort outcomes over a four-year period.[2][7]

As higher education grapples with enrollment cliffs and affordability crises, the evidence pack surrounding OER offers a rare, scalable win. By transforming course materials from a financial barrier into an adaptable pedagogical tool, institutions are simultaneously lowering the cost of a degree and increasing the likelihood that students will actually finish it.[1][7]

How we got here

  1. 2018

    Early institutional adopters launch some of the first comprehensive Zero Textbook Cost degree initiatives.

  2. 2019-2020

    Statewide initiatives, like the Colorado OER Grant Program, begin funding faculty to replace commercial textbooks with open resources.

  3. 2023-2024

    Major efficacy studies confirm that OER adoption significantly improves completion rates, particularly for Pell-eligible students.

  4. 2025-2026

    Universities increasingly mandate the labeling of ZTC courses in registration systems, while state programs report tens of millions in cumulative student savings.

Viewpoints in depth

Higher Education Researchers

Focuses on the empirical data linking open materials to improved academic outcomes and closed equity gaps.

Academic researchers emphasize that OER is not merely a financial aid tool, but a pedagogical intervention. By analyzing tens of thousands of student records, they have demonstrated that day-one access to course materials significantly reduces withdrawal rates. Researchers are particularly focused on how OER disproportionately benefits Pell-eligible and first-generation students, arguing that commercial textbook costs serve as an artificial filter that penalizes low-income learners regardless of their academic capability.

Institutional Policymakers

Focuses on the systemic rollout of ZTC degrees to drive enrollment, retention, and statewide cost savings.

For university administrators and state higher education departments, OER represents a high-ROI strategy to combat declining enrollment and improve institutional metrics. Policymakers view the transition from isolated OER courses to complete 'Zero Textbook Cost' degree pathways as a necessary evolution. By funding faculty grants to develop these resources, states like Colorado and provinces like Alberta are actively using ZTC designations as a marketing tool to attract cost-conscious students and improve overall university retention rates.

Clinical & STEM Faculty

Focuses on maintaining rigorous academic standards and licensure pass rates through customized open materials.

Faculty in high-stakes disciplines like nursing and engineering initially approached OER with caution, concerned about the accuracy and depth of free materials. However, clinical educators have increasingly embraced open resources because the licensing allows for rapid updates—crucial in fields where best practices evolve constantly. By collaboratively peer-reviewing and remixing content, STEM and clinical faculty argue that OER actually provides higher-quality, more relevant instruction than static commercial textbooks, as evidenced by sustained high pass rates on national licensure exams.

What we don't know

  • While course-level data is robust, longitudinal studies tracking the impact of full ZTC degree pathways on multi-year graduation rates remain limited.
  • It is unclear how the rapid integration of AI-generated content will impact the peer-review processes and quality control of future Open Educational Resources.
  • The long-term sustainability of grant-funded OER creation models is uncertain if state higher education budgets face future cuts.

Key terms

Open Educational Resources (OER)
Freely accessible, openly licensed text, media, and other digital assets that are useful for teaching, learning, and assessing as well as for research purposes.
Zero Textbook Cost (ZTC)
A designation for courses or entire degree programs that eliminate the cost of commercial textbooks by utilizing OER, library databases, and other free materials.
DFW Rate
An academic metric representing the percentage of students in a course who receive a D grade, an F grade, or who Withdraw before completing the term.
Pell-eligible
Students who qualify for the federal Pell Grant, typically indicating a high degree of financial need and serving as a proxy for low-income status in educational research.
Creative Commons License
A public copyright license that enables the free distribution of an otherwise copyrighted work, allowing creators to grant permission for others to share and adapt their material.

Frequently asked

What is a Zero Textbook Cost (ZTC) degree?

A ZTC degree is a complete academic pathway—such as an associate or bachelor's degree—where students are not required to purchase any commercial textbooks. All courses utilize free, openly licensed materials or library resources.

How do Open Educational Resources (OER) differ from traditional textbooks?

OER are teaching materials released under open licenses (like Creative Commons) that allow anyone to freely use, adapt, and distribute them. Unlike commercial textbooks, faculty can customize OER to fit their specific syllabus.

Does using free materials lower academic quality?

Evidence suggests the opposite. Multiple large-scale studies show that students using OER achieve the same or better grades, lower withdrawal rates, and maintain high pass rates on rigorous licensure exams like the NCLEX.

How do universities fund the creation of OER?

Many states and institutions provide grant funding to compensate faculty for the time required to write, peer-review, and adapt open materials. For example, Colorado has invested millions in state grants to drive OER development.

Sources

Source coverage

7 outlets

3 viewpoints surfaced

Higher Education Researchers 40%Institutional Policymakers 35%Clinical & STEM Faculty 25%
  1. [1]Association of American Colleges and UniversitiesHigher Education Researchers

    The Impact of Open Educational Resources on Various Student Success Metrics

    Read on Association of American Colleges and Universities
  2. [2]Colorado Department of Higher EducationInstitutional Policymakers

    2025 Open Educational Resources Report

    Read on Colorado Department of Higher Education
  3. [3]HealioClinical & STEM Faculty

    Promoting Student Success With Open Educational Resources

    Read on Healio
  4. [4]eLearning IndustryClinical & STEM Faculty

    How OER Is Transforming Higher Education In 2025

    Read on eLearning Industry
  5. [5]University of Northern ColoradoHigher Education Researchers

    Open Educational Resources (OER) Efficacy and Experiences: A Mixed Methods Study

    Read on University of Northern Colorado
  6. [6]University of AlbertaInstitutional Policymakers

    Zero Textbook Cost (ZTC) Initiative

    Read on University of Alberta
  7. [7]Factlen Editorial TeamHigher Education Researchers

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team
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