Last week, Kaplan Test Prep and Cengage announced a new partnership, bringing free test prep and live academic support to Cengage Unlimited subscribers. At the outset of the partnership, the test prep offerings include GRE, GMAT, LSAT, MCAT, DAT and Praxis. In addition, Cengage Unlimited subscribers will get free access to Kaplan’s HelpSuite, giving them academic support for physics, chemistry and organic chemistry.

Students can use on-demand videos and quizzes or reach teachers through online office hours, live chat and email. Subscribers will receive 30 days of free access per semester. As part of the deal, Kaplan is now Cengage’s exclusive test prep provider.

“Buying course materials is college students’ biggest source of financial stress after tuition, which makes this partnership especially timely as they head back to school this month,” said Judith Karkowsky, senior vice president, corporate and business development for Cengage, in an August 15 statement. “Cengage Unlimited gives us the ideal platform to serve students over their entire college career with resources and tools they need to take the next leap in life — whether that is with quality Cengage materials or Kaplan’s best-in-class prep products and services. Together, we’re providing that added value for free to students for 30 days as part of their subscription.”

Lee Weiss, vice president for Kaplan Test Prep, also commented on the partnership.

“Kaplan and Cengage share the mission of making educational advancement a reality for as many students as possible and making it accessible to them in the ways they want, whether it’s a month-to-month subscription or a one-time purchase,” said Weiss. “Whichever way they choose, access to our graduate-level prep and academic support tools will provide college students with a great way to get exposure to options as they seek to differentiate themselves in a competitive world.”

Cengage is pitching its new unlimited subscription, Cengage Unlimited, as a way for students to learn more for less. Subscribers get access to educational materials affordably through digital learning platforms like MindTap, iLrn and WebAssign as well as ebooks and study guides. Currently only available in the United States, Cengage Unlimited launched this month, giving subscribers access more than 22,000 digital products. Textbook rentals are also available to subscribers for $7.99. Once a student’s subscription ends, they can keep up to six ebooks for 12 months in an online digital locker to access on any device.

Cengage Unlimited pricing is $119.99 for four months (one term), $179.99 for one year, or $239.99 for two years. The question is how many of the average students’ course materials are available. If most of them are, this could be a deal.

Some textbook authors don’t consider this a deal. In fact, two authors sued Cengage Learning in May, saying the new unlimited subscriber service will cost the authors significant sales and royalty revenue. The authors claim that by moving from a royalty-on-sale business model to one where they receive compensation based on relative use their sales will be dramatically reduced. The authors are also claiming that Cengage is not properly compensating the authors for related products including multimedia, tests and homework.

Earlier this month, Cengage responded to the allegations, denying that their new business model “tramples on” or in any impedes the authors’ rights or the ability to generate comparable revenue through the subscription program.

Insider Take:

As we’ve said before, for parents and students, Cengage Unlimited sounds like a good deal, making educational materials for affordable – and more accessible – at a fraction of the cost. Adding Kaplan Test Prep materials and access to educational support merely sweetens the pot for college students.

However, the lawsuit could play a significant factor in the success of the business model switch, as does the accessibility of the right materials. From Cengage’s perspective, this switch will help the company earn recurring revenue which could help it with financial sustainability in the long term. It will be up to a judge to decide of the deal is fair to the authors of college textbooks, not just those who have filed suit.