Factlen ExplainerOpen EducationEvidence PackJun 17, 2026, 7:50 AM· 4 min read· #2 of 2 in education

The Measurable Impact of Free Textbooks on College Graduation Rates

A growing body of evidence shows that Open Educational Resources (OER) do more than save students money—they actively improve grades and reduce dropout rates, particularly for underserved populations.

By Factlen Editorial Team

Open Education Advocates 40%Higher Ed Administrators 35%Faculty Pragmatists 25%
Open Education Advocates
Argue that publicly funded education requires freely accessible materials to ensure equity and maximize student success.
Higher Ed Administrators
Focus on the institutional ROI of OER, balancing the upfront cost of faculty course-redesign against higher retention rates.
Faculty Pragmatists
Support the concept of free materials but point to the severe time constraints and lack of institutional incentives required to overhaul their syllabi.

What's not represented

  • · Commercial Textbook Publishers
  • · University Bookstore Operators

Why this matters

With textbook costs averaging over $1,200 a year, course materials have become a hidden barrier to college completion. Transitioning to openly licensed resources offers a rare, proven intervention that simultaneously lowers the cost of higher education and improves academic outcomes.

Key points

  • Open Educational Resources (OER) are freely accessible, openly licensed materials that replace traditional commercial textbooks.
  • Students using OER perform as well as or better than those using paid materials, with higher overall grades and completion rates.
  • The academic benefits of OER are most pronounced for Pell Grant recipients and historically underserved student populations.
  • While 64% of faculty are familiar with OER, active adoption remains at 29% due to the significant time required to redesign courses.
$1,200
Average annual student textbook cost
64%
Faculty familiar with OER (2023)
29%
Faculty actively using OER
$75 million
Projected student savings in Colorado by 2026

The rising cost of higher education is well documented, but one of the most persistent barriers to student success is a hidden fee handed out on the first day of class: the syllabus reading list. With the average undergraduate spending over $1,200 annually on textbooks and supplies, course materials have become a significant financial hurdle.[6]

For decades, the assumption was that expensive, commercially published textbooks were simply the cost of a quality education. But a growing body of academic research is upending that consensus. The data reveals that Open Educational Resources (OER)—freely accessible, openly licensed text and media—do not just save students money. They actively improve academic performance and keep vulnerable students from dropping out.[1][6]

Open Educational Resources are teaching, learning, and research materials that reside in the public domain or have been released under an intellectual property license that permits free use and repurposing. Unlike traditional textbooks, which are locked behind copyright and expensive access codes, OER can be downloaded, shared, and customized by professors to fit their exact curriculum.[3]

The immediate financial impact of OER adoption is staggering. When institutions coordinate their efforts, the savings scale rapidly. In Colorado, a state-funded OER grant program is projected to surpass $75 million in cumulative student savings by the spring of 2026. Similarly, the Achieving the Dream initiative, which tracked 38 community colleges, found that replacing commercial texts with open resources saved 160,000 students nearly $11 million over a two-and-a-half-year period.[3][4]

The financial burden of commercial textbooks compared to state-level OER savings.
The financial burden of commercial textbooks compared to state-level OER savings.

Yet, the most critical question for educators has always been one of efficacy: Does free mean lower quality? A comprehensive 2024 meta-analysis published in the International Journal of Educational Research examined 26 distinct studies to answer this. The researchers found that students in OER courses actually earned higher overall grades and had higher completion rates than their peers using commercial textbooks.[1]

The mechanism behind this improvement is not necessarily that open textbooks are inherently superior to commercial ones. Rather, the academic boost comes from universal, immediate access. In a traditional classroom, a significant percentage of students delay purchasing the textbook until their financial aid clears, or they attempt to navigate the course without it entirely. With OER, 100 percent of the class has the required reading on day one.[6]

The mechanism behind this improvement is not necessarily that open textbooks are inherently superior to commercial ones.

This universal access acts as a powerful equity multiplier. A landmark study analyzing 21,822 students found that OER adoption significantly decreased DFW rates—the percentage of students who receive a D, an F, or Withdraw from a course.[2]

OER adoption correlates with lower withdrawal and failure rates, particularly for underserved students.
OER adoption correlates with lower withdrawal and failure rates, particularly for underserved students.

Crucially, the Colvard study revealed that these academic gains were not distributed evenly. The drop in DFW rates was disproportionately larger for Pell Grant recipients, part-time students, and historically underserved populations. By removing the financial barrier to entry, OER effectively narrows the attainment gap in higher education.[2]

The success of individual OER courses has led to the development of "Z-Degrees"—entire degree pathways where every required course has zero textbook costs. Several states now mandate that course catalogs clearly label OER sections, allowing savvy students to build their semester schedules based on which classes will not require expensive commercial materials.[3][4]

Despite the overwhelming evidence supporting OER, systemic adoption remains sluggish. A recent report by Bay View Analytics found that while 64 percent of higher education faculty are now familiar with open resources, only 29 percent actively require them in their courses.[5]

While a majority of faculty are familiar with open resources, adoption remains bottlenecked by the time required to redesign courses.
While a majority of faculty are familiar with open resources, adoption remains bottlenecked by the time required to redesign courses.

The primary bottleneck is not ideological, but logistical. Transitioning a course away from a commercial textbook takes significant effort. Professors report that planning an OER course initially takes twice as much time, as they must curate, review, and align disparate open materials to their learning objectives.[4][5]

Furthermore, commercial publishers provide a suite of ancillary materials—test banks, slide decks, and automated grading software—that save professors immense amounts of time. Without institutional support, such as course-release time or stipends to compensate for the extra labor, many faculty members simply cannot afford to make the switch.[5][6]

Even so, the faculty who do transition rarely look back. Surveys indicate that over 80 percent of professors who have taught with OER say they would not return to traditional commercial materials.[4]

As higher education faces mounting pressure to demonstrate its return on investment, the evidence surrounding OER offers a rare, unambiguous win. It is one of the few pedagogical interventions that simultaneously lowers the cost of attendance, improves academic outcomes, and advances institutional equity. The challenge for the next decade is no longer proving that OER works, but building the institutional infrastructure required to make it the default.[6]

How we got here

  1. 2012

    Early OER initiatives begin gaining traction as textbook prices outpace inflation.

  2. 2018

    A landmark study of 21,822 students confirms OER improves grades and reduces dropout rates.

  3. 2020

    The pandemic accelerates the shift to digital materials, boosting OER awareness.

  4. 2023

    Faculty familiarity with OER reaches 64%, though active adoption lags at 29%.

  5. 2025-2026

    States like Colorado report tens of millions in cumulative student savings from coordinated OER grants.

Viewpoints in depth

The Equity Argument

OER is viewed as a critical tool for leveling the academic playing field.

Advocates for educational equity point out that commercial textbooks act as a regressive tax on learning. When a required textbook costs $150, affluent students purchase it without a second thought, while low-income students often wait for financial aid to clear or attempt to pass the class without the reading material. By eliminating this cost barrier on day one, OER ensures that academic success is determined by a student's effort and capability, rather than their immediate cash flow.

The Faculty Implementation Hurdle

Professors face structural barriers to adopting open materials.

While most faculty agree that textbooks are too expensive, the reality of academic workloads makes OER adoption difficult. Rebuilding a syllabus around open materials often takes twice as much preparation time as using a publisher's pre-packaged textbook, which frequently comes with ready-made quizzes, slide decks, and grading software. Without course releases, stipends, or recognition in the tenure process, many professors simply cannot afford the time required to make the switch.

The Commercial Publisher Pivot

Textbook companies are adapting to the open-access threat with 'inclusive access' models.

Traditional educational publishers argue that their materials undergo rigorous peer review and offer superior supplementary software. To combat the rise of OER, they have aggressively pushed 'inclusive access' contracts. These agreements automatically bill students for digital access to commercial materials through their tuition fees, usually at a discounted rate. Critics, however, argue this model forces students to buy materials they might otherwise borrow or buy used, preserving publisher monopolies under the guise of convenience.

What we don't know

  • Whether the long-term maintenance and updating of open resources can be sustained without the revenue models of commercial publishers.
  • How the integration of generative AI will impact the creation, quality control, and copyright status of future open educational materials.

Key terms

Open Educational Resources (OER)
Teaching and learning materials that are in the public domain or released under an open license, allowing free access, use, and adaptation.
DFW Rate
The percentage of students in a course who receive a D, an F, or Withdraw, used as a primary metric for course difficulty and student retention.
Z-Degree
A complete degree program—often an associate's degree—that can be earned entirely through courses with zero textbook costs.
Inclusive Access
A publisher model where digital textbook costs are automatically billed to a student's tuition on the first day of class, often at a discount but without the freedom of OER.

Frequently asked

Are open educational resources lower quality than paid textbooks?

No. Multiple meta-analyses show that students using OER perform as well as, or slightly better than, their peers using commercial textbooks.

Who pays to create OER materials?

OER are typically funded by university grants, state education departments, philanthropic organizations, or created by faculty as part of their academic service.

Why don't all professors use free textbooks?

Transitioning a course to OER requires significant upfront work to find, adapt, and integrate new materials, and many professors lack the institutional time or financial incentives to do so.

Sources

Source coverage

6 outlets

3 viewpoints surfaced

Open Education Advocates 40%Higher Ed Administrators 35%Faculty Pragmatists 25%
  1. [1]International Journal of Educational ResearchOpen Education Advocates

    The impact of open educational resources on student achievement: A meta-analysis

    Read on International Journal of Educational Research
  2. [2]International Journal of Teaching and Learning in Higher EducationHigher Ed Administrators

    The Impact of Open Educational Resources on Various Student Success Metrics

    Read on International Journal of Teaching and Learning in Higher Education
  3. [3]Colorado Department of Higher EducationOpen Education Advocates

    2025 Open Educational Resources Report

    Read on Colorado Department of Higher Education
  4. [4]SRI EducationHigher Ed Administrators

    OER Degree Initiative: Final Report

    Read on SRI Education
  5. [5]Bay View AnalyticsFaculty Pragmatists

    Educational Resources in U.S. Higher Education

    Read on Bay View Analytics
  6. [6]Factlen Editorial TeamHigher Ed Administrators

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team
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The Measurable Impact of Free Textbooks on College Graduation Rates | Factlen