April 26, 2015

Ms. Melanie Farley

Hamline University
1536 Hewitt Avenue
Saint Paul, MN 55104
Dear Ms. Farley:
On March 5, 2015, I requested permission to perform a feasibility study to determine the
feasibility of implementing a book rental program at Hamline University for all undergraduate
students. After being granted permission, I have conducted the feasibility study and have
included a copy with this letter.
The current problem is that there are 2,211 undergraduate students at Hamline University, and
only freshman and sophomore students are allowed to use the textbook rental program. Students
in the book rental program have the opportunity to pay a flat rate of $275 per semester to rent
any textbook required for classes. Within my peer groups, I have heard junior and senior students
suggest that the rental program be extended to all students to aid financial costs.
Hamline University is a private liberal arts college that values the financial well-being of its
students, and how that well-being contributes to the overall experience of attending this
prestigious university. I believe that this feasibility study was an important to step to assess how
the prevalence of aiding financial burdens affects this Hamline value.
This feasibility report used primary research gathered from students at Hamline University and
secondary research collected from the Bush Memorial Library databases. After compiling and
analyzing this research, I came to the conclusion that there is not enough conclusive evidence
that suggests students are willing to pay the required fee for this service. Despite this conclusion,
I have included in my report some recommendations of courses of action that may be taken to
help alleviate the issues that arise from the rising purchase prices at Hamline University.
I thank you for the opportunity to research this project. It is my hope that the enclosed
information may assist you in helping better serve the Hamline community.
Sincerely,
Chelsey Bonsante

Running head: IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Implementing a Book Rental Program for All Hamline Students:

A Feasibility Report
Chelsey Bonsante
Hamline University

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Abstract
The goal of this report is to establish whether it is feasible to implement a book rental program
for all undergraduate students at Hamline University. The participants in this study included 36
current Hamline University students who helped provide primary information about the
prevalence of the program at Hamline. These participants also provided valuable information
regarding their average costs of course materials per year along with their willingness to pay for
this program next calendar year. Along with the questionnaire, scholarly articles and journals
were used to gather information about the textbook inflation prices and rental trends nationwide.
Through the course of this study, evidence has shown that there is a demand for this rental
program, but students are not yet willing to pay the fee required to cover the costs of the
program. Implementing a book rental program for all students at the current time is not feasible,
but this study consists of recommendations about other ways to help junior and senior students
accommodate the rising costs of course materials.

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Table of Contents
Abstract ......................................................................................................................................................... 2
Introduction ................................................................................................................................................... 4
Methods ........................................................................................................................................................ 6
Results ........................................................................................................................................................... 8
Criteria Question 1 ................................................................................................................................ 9
Criteria Question 2 .............................................................................................................................. 10
Criteria Question 3 .............................................................................................................................. 11
Criteria Question 4 .............................................................................................................................. 13
Conclusions ................................................................................................................................................. 14
Recommendations ....................................................................................................................................... 15

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Introduction
On March 5, 2015, I submitted a request to research the feasibility of implementing a
book rental program for all undergraduate students at Hamline University. The following
paragraphs include a brief introduction into the secondary research I conducted for this
feasibility study. The purpose of this secondary research is to establish a need for the program
and analyze the benefits other colleges have experienced from renting textbooks to students.
Textbooks are a major cost for any college student. A report released by The Government
Accountability Office (GAO, 2005) finds that the average student spends nearly $900 on
textbooks and supplies, or 26% of tuition and fees per year at typical public four-year colleges.
Textbook prices have increased 186% since 1986, about 6% per year (GAO, 2005). This report
was released in 2005, so with the 6% inflation rate, students currently spend approximately
$1,440 on textbooks and coursework supplies. In addition, Soria, Weiner, and Lu, (2014) stated
that 70.16% of low-income and working-class students at the University of Minnesota admitted
to buying fewer and cheaper books in order to save money in college.
High costs occur partly because there are new editions of textbooks created every year.
Publishers contend their new products aid learning and help overworked teachers instruct and
evaluate (Bridges, 1997). Alternatively, critics say, Publishers are gouging students, bundling
their products with unnecessary add-ons and undermining the market for used textbooks by
coming out with new editions (GAO 2005, para 3).
Since 2010, the number of university bookstores offering textbook rental programs in the
U.S. has skyrocketed, from just a handful to more than 2,000. At Pennsylvania State University,
across 22 of its 24 campuses, students have saved more than $5.5 million since the rental
program started (Penn State, 2012). Renting is an attractive option for students because a rented

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

textbook costs approximately 50% less than a new book. Also, the rental option is attractive for
bookstores because the lower prices entice the students into the store instead of purchasing
online (Dervarics, 2007).
Two years ago, Hamline University instituted a book rental program called the
BookSmart Rental Program. This program is required for all freshman and sophomore students.
The logistics of the program are quite simple. The bookstore has a database including every
student in the program and each class he or she is taking. Once class registration is complete, the
store has the ability to package all the books needed for the next semester. The student then must
come to the store, pick up the textbooks, and return them during finals week. Each students pays
a flat rate of $275 per semester, and this rate is applied to the tuition bill.
This is a sample of the research conducted for this report. The main objective of my
compiled secondary information is to gauge the general prevalence, use, and consequences of
inflating textbook prices in education institutions across the United States. After assessing this
information on a national scale, I will use the information gathered from questionnaires that were
distributed to Hamline students to funnel my observations to the micro level. In a nutshell, all
information gathered, both secondary and primary, will be used to come to a conclusion and
make recommendations about the BookSmart program at Hamline University. It is the goal of
my report to find the facts beneath these claims and to use that information to make a
recommendation about whether Hamline could or should alter their current policies regarding the
implementation of this current rental program.
I propose that all students be entered into the book rental program to alleviate costs and
hassles of buying textbooks from external sources. This will promote well-being among students
and the Hamline University Bookstore.

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Methods

The methods used to gather research on the feasibility of implementing a book rental
program for all undergraduate students at Hamline University came from a combination on
secondary and primary resources:
Secondary Research:

I used Hamlines Bush Librarys online databases, Summon and Academic Search
Premier, to gather articles for my research.

I used search words such as, textbook costs, book rental programs nationwide, and
textbook rental trends to find relevant information for my feasibility study.

I read through relevant articles until I had gathered enough information to satisfactorily
support my report.

I highlighted important passages for later review.

Primary Research:

I developed a questionnaire regarding the demands of a rental program at Hamline

University.

I distributed this questionnaire to 36 undergraduate students.

I compiled and analyzed the data from the questionnaire, the results of which will be
discussed in the results section of this report.

I interviewed Beth Gunderson, Chair at the Hamline University School of Business,

about the future plans for the rental program.

I evaluated the data gathered by these methods based upon the following criteria:

Are at least 51% of Hamline University undergraduate students willing to

continue their participation in the BookSmart program?

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Do 51% of junior and senior students want to participate in the book rental
program?

Is Hamline logistically capable of extending the program to all students right

now?

Does Hamline University monetarily benefit from extending the program to all
students?

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Results
According to Carnns (2014), in the last academic semester, more than a third of all

undergraduate students nationwide rented at least one textbook. For example, Western Michigan
University students can now skip buying their textbooks under a new pilot program (Zipp, 2013). Almost
every textbook in Textbook Alley will be available for rent under a new Rent All program through Follett.
Renting textbooks has been an option at WMU for the past two years and has taken off nationwide since
2007, when Chegg.com launched its online rental textbook program. WMU is just one of 13 of Follett's
930 campuses to offer the option for every book, (Zipp, 2013).

The primary research for this report was compiled by distributing questionnaires to
students at Hamline University. Forty surveys were distributed and thirty-six were completed
and analyzed. Some of the results of this survey that proved most relevant to establishing the
feasibility of this topic are attached below. This information was used to asses some of the
criteria that were previously established as being important for this feasibility report. This criteria
includes:

Are at least 51% of Hamline University undergraduate students willing to

continue their participation in the BookSmart program?

Do at least 51% of junior and senior students want to participate in the book rental
program?

Does Hamline University monetarily benefit from extending the program to all
students?

Is Hamline University logistically capable of extending the rental program to all

students?

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

Question 1. Figure 1 shows that a large majority of freshman and sophomore students would
continue their participation in the book rental program. There were a total of 18 freshman and sophomore
respondents. The percentages are based from a total of 18 participants. Figure 1 illustrates the percentage
of freshman and sophomore students sampled at Hamline University. The respondents answered either
yes or no if they would be willing to continue their participation in the rental program. The freshman and
sophomore students have already participated in the book rental program at Hamline, so their responses
must be analyzed in a separate category from junior and senior undergraduates. This figure concludes that
at least 51% of previous book rental users are willing to reuse the program. Therefore, the first criteria
question is answered in favor as to whether or not there is a consumer demand for freshman and
sophomore students.

Figure 1. Percentage of freshman and sophomore undergraduate responses to whether or not they would
participate in a book rental program next calendar year.

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

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Question 2. In addition to sampling returning book rental users, junior and senior students were
asked whether or not they would participate in a rental program where the university bookstore would
gather, package, and rent the textbooks to the student for a fee paid each semester. Eighteen juniors and
seniors responded to the questionnaire. These responses had to be evaluated on a separate graphic
because these responses would determine the current market that is unable to participate in the rental
program due to their year in school. Figure 2 represents an even representation of the junior and senior
responses. Based on this figure, there is not enough demand among junior and senior students to
implement the book rental program for all current students. The second criteria question is not
successfully answered.

Figure 2. Percentage of junior and senior undergraduate responses who would participate in a book rental
program if it were offered next calendar year.

Pollitz (2006) stated that College textbook prices have risen at twice the inflation rate
since the 1980s, averaging 6% per year (p. 3). According to Carnns (2014), the cost of
textbooks is not a new concern for students; it has been an ongoing issue for cost conscious

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

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students. As students watch their loans increase in an era of diminished financial aid
opportunities and the cost of higher education skyrocket, they are investigating every aspect of
the cost of a university education.
As previously stated, the Government Accountability Office (GAO, 2012), reported on the
inflation of textbook prices over a 20-year period. Additionally, Dutch (2005) explained the causes of

rising textbook prices. Additional features, instructional and technological, raise the cost of
textbooks. New editions with minimal alterations are coming out at a faster rate compared to
cycles 10 to 20 years ago according to Robinson (2011). Though editions are necessary with the
changing times, annual reprints and alterations are not consistently necessary. In addition,
customized publishing designed for specific classes raises prices and negates student ability to
buy and sell used books. The price of U.S. textbooks is often much greater than the same book
sold in international markets. Dutch (2005) mentions that textbook publishers have taken action
to limit students abilities to take advantage of these lower international prices.
At this point, the survey data has established that a large majority of recurring users
would continue their participation, but only half of all juniors and seniors would participate in
the book rental program. This information supports that the use of the rental program is
beneficial for freshman and sophomore students, but junior and senior students do not see
enough value to extend the program to all. For research purposes, the average fees students were
willing to pay are represented below.
Question 3. To show if Hamline University will monetarily benefit from extending the book
rental program to all students, students who currently participate in the book rental program at Hamline
University pay a fee of $550 per year. This fee covers all overhead costs the bookstore allocates from
renting all materials to students. The undergraduates surveyed were asked approximately how much they
would be willing to pay for the university to gather, package, and rent the textbooks to an individual each

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

12

year. The amounts in the chart represent the amounts students would be willing to pay each year for this
service. Seventeen students were not willing to pay any amount for this service. Thirteen respondents
were willing to pay $550 per year, and one respondent was willing to pay more than $550 for this service.
Based on these results, Hamline University will not monetarily benefit from extending this program to all
undergraduate students because a large majority are not willing to pay any amount for this service.
Without a fee, Hamline University does not gain any benefit by extending the program to everyone. The
third criteria question is not successfully answered to support this feasibility study.

Figure 3. Annual amount undergraduate students are willing to pay for a book rental program.

To alleviate costs, textbook companies have come out with e-books for students to
purchase as a means of minimizing costs. As stated by Novack (2012), to date, e-books have
offered students some cost savings; those savings just havent been enough to get them to put
down their more familiar print textbook and switch over to digital. E-books are a great
alternative, but a large majority of students would choose to keep a hard copy of a textbook for

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

13

homework and study sessions (Simonson, 2013).The most cost effective way for students to
receive college materials is by renting (Zipp, 2013).
Question 4. In March, I spoke briefly with Beth Gunderson, Chair of the School of Business. I
asked her about the direction the book rental program was going and she mentioned that Hamline has no
intention of allowing current juniors and seniors use the rental program because the program was
implemented after those students registered for classes and were in a separate database. The plan moving
forward is to keep the book rental program with the current freshman and sophomore classes, so
eventually all students will be participants in the BookSmart program. Hamline is not yet logistically
capable, but eventually will be able to extend the program to everyone (B. Gunderson, personal

communication, March 17, 2014).

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

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Conclusions
The purpose of this study was to research the feasibility of implementing a book rental
program for all undergraduate students at Hamline University. After analyzing and reviewing the
data, the following conclusions can be drawn:

Based on secondary research, there are benefits associated with having students
rent their textbooks rather than purchase from secondary sources.

The use of the book rental program was largely beneficial for those who have
participated, according to the students surveyed.

The main drawback for students continuing to participate and those wanting to
join the book rental program is the hefty fee. Many business students pay less
than $500 per year for textbooks.

Over 75% of all students polled stated they would not pay to use the book rental
program.

Hamline is not logistically capable of supporting a rental program for current

juniors and seniors.

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

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Recommendations
Although this feasibility report concludes that it is not feasible for all students to
participate in the book rental program, it is recommended that another form of solution should be
reached to answer and alleviate the lack of resources available for junior and senior students.
Programs that instate some financial options for current junior and senior students to become
more able to afford the rising cost of textbooks including but not limited to discounts and rental
packages. It is also recommended that further research be conducted to gain a more
representative sample of undergraduate students and explore alternative options.

IMPLEMENTING A BOOK RENTAL PROGRAM FOR ALL STUDENTS

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References
Bridges, A. (1997). Textbook municipal reform. Urban Affairs Review, 31(1), 97.
Carnns, A. (August, 2014). New York Times. A quandary over textbooks: whether to buy or
rent. Retrieved from http://www.nytimes.com/2014/08/09/your-money/TextbooksDervarics, C. (2007). College textbook prices focus of congressional advisory committee
hearing. Diverse Issues in Higher Education, 23(24), 401-417.
Dutch, S. I. (2005).Why textbooks are the way they are. Academic Questions, 18(4), 34-48.
Novack, J. (May 2012). Forbes. Should college students be forced to buy e-books? Retrieved
from http://www.forbes.com/sites/janetnovack/2012/05/18/
Penn State. (2012). News. Textbook rentals: a growing trend in higher education. Retrieved
from http://news.psu.edu/story/149169/2012/05/03/textbook-rentals-growing-trend
Pollitz, J. H. (2006). The high cost of textbooks: a convergence of academic libraries, campus
bookstores, publishers? Retrieved from http://southernlibrarianship.icaap.org/content/
Robinson, S. (2011). Student use of a free online textbook. Academy of Educational Leadership
Journal, 15(1), 97-119.
Simonson, M. (2013). E-books: the future? Distance Learning, 10(3), 80.
Soria, K. M., Weiner, B., & Lu, E. C. (2014). Financial decisions among undergraduate students
from low-income and working-class social class backgrounds. Journal of Student
Financial Aid, 44(1), 4-25.
U.S. Government Accountability Office. (2005). College textbooks: Enhanced offerings appear
to drive recent prices. Washington, DC: Author.
Zipp, Y. (August, 2013). WMU bookstore one of 13 nationwide to participate in 'rent all'
textbook prices.

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