Institutions and Courses

Open Educational Resources: A Cost-Effective Solution for Higher Education

How open educational resources can lower materials and course costs for colleges, with a fair look at the hidden costs of staff time, support, hosting and upkeep.

On this page
  1. Whose cost are we talking about?
  2. Savings for students
  3. Savings for the institution
  4. The hidden costs
  5. Comparing options fairly
  6. Where savings are most likely
  7. A cautious conclusion about “cost-effective”

Whose cost are we talking about?

“Cost-effective” can mean different things depending on who is paying. Students pay for textbooks and access codes. Departments pay for licenses, printing and staff time. The institution as a whole pays for hosting, library services and support. An open educational resource can reduce one of these while increasing another, so it helps to separate them before drawing conclusions.

This article looks at where savings are most plausible and where costs tend to hide. It is a way of thinking about the question, not a forecast for any particular college.

Savings for students

The clearest saving is on required course materials. Where an openly licensed textbook replaces a commercial one, students may be able to read it online at no charge, and printed copies, when offered, are usually cheaper than a commercial edition because the publisher is not charging for the content itself. The same logic applies to open problem sets, slides and readings.

Here is a simple, entirely hypothetical example. Suppose a first-year course has 200 students and the required textbook costs 90 in local currency. If every student bought it new, that is 200 x 90 = 18,000 spent on that one book. If an open alternative is adopted and half the students choose a printed copy at a printing cost of 20, then 100 x 20 = 2,000 is spent, a difference of 16,000. The numbers are made up, and real situations are messier: some students buy used copies, rent, share or go without. But the example shows why savings in a high-enrollment course can add up.

Some students may also be more likely to have the material on the first day of class when it is free. Whether that improves their results, or affects student retention, is not settled, and findings from different places vary, so it is wiser to treat it as a possibility than a promise. The link between textbook costs and what students choose to buy or skip is real for many, though.

Savings for the institution

The savings to the institution itself are usually less direct. Possible areas include:

  • Fewer paid licenses for course packs or digital materials.
  • Less staff time spent writing materials from nothing, since existing open content can be adapted.
  • Lower spending on library copies or reserve collections of expensive textbooks.
  • Reuse of the same content across sections or campuses.

Whether these show up as real budget savings depends on how the institution accounts for them. Staff time saved on drafting may simply be redirected to other work, which is a benefit but not a reduction in spending.

The hidden costs

A balanced view needs to count what open adoption costs. The following are common.

Staff time. Someone must find suitable resources, judge their quality, check that they fit the course and adapt them. For an instructor new to this, the first course can take noticeably more effort than picking a standard textbook.

Support roles. Librarians, instructional designers and technical staff often do much of the work of locating and preparing material. Their time has a cost even if no one invoices for it.

Quality and accessibility work. Open material may lack captions, alt text or a screen-reader-friendly format. Fixing this takes skill and time. It is also important for meeting legal and ethical duties to students, and the institution should consult its own accessibility specialists on what applies.

Hosting and maintenance. Content needs to live somewhere stable, and links and files must be checked and updated. Without this, a course that was inexpensive to launch becomes costly to repair.

Printing and distribution. If the institution runs a print-on-demand service or provides printed copies for students without reliable connections, that has a cost.

Replacement and updating. Open material that is not maintained can go out of date. Someone has to decide who updates it and when. Questions about a sustainable funding model matter a great deal here, and so does the role of academic librarians in tracking what is in use.

Comparing options fairly

A useful way to compare is to list, for one course, the full cost of the current approach and of the open approach over a few years. Include student spending, staff time (an estimate of hours is fine), support, hosting and updating. Be cautious about:

  • Comparing the first-year cost of open adoption, which includes set-up effort, to the ongoing cost of a commercial approach. The set-up cost is spread over later years.
  • Assuming every student would have bought the commercial book at full price.
  • Ignoring that some commercial materials include extras, such as homework systems, which may have no direct open equivalent or may need to be replaced with something else.

If a rough comparison shows savings, that is encouraging; if it shows little change, there may still be reasons to continue, such as flexibility in adapting the material. The reverse is also possible, and honest reporting of it helps other institutions.

Where savings are most likely

Savings tend to be most plausible where several conditions hold: high enrollments, an expensive current textbook, good open material already existing in the subject, and instructors willing to adopt it. Introductory courses in widely taught subjects often fit this description, and subjects with well-developed open textbooks are natural candidates. Checking the copyright and licensing terms of each item before reuse avoids unexpected costs later. Specialized advanced courses, where open material is scarce, may not.

Some institutions have found that sharing the work helps, for example by having several instructors adopt the same open resource and pool their improvements. That spreads the effort and reduces the per-course burden.

A cautious conclusion about “cost-effective”

Cost-effectiveness is about what you get for the money, not just the money. If open resources cost less and students learn about as well, that is a good outcome. If they cost less but quality drops, the saving is false. Evidence on learning effects is mixed, so institutions are wise to monitor results in their own courses, using whatever measures they already trust, instead of relying on general claims.

Treat the figures in any promotional article, including the hypothetical one above, as illustrations. Your own enrollments, prices and staffing will decide what the real picture looks like.

The complete guide to institutions and courses

The Benefits of Open Education for Higher Education Institutions
Read the guide

Keep exploring

Guides from other topics

All topics →