WHY WAS THIS FUNDED?

This contract is authorized under Title IV of the Higher Education Act, which is the federal law that created and governs student financial aid programs. The government needs a private technology partner to run the complex software systems required to manage hundreds of billions of dollars in student aid each year.

WHAT PUBLIC PROBLEM IS IT TRYING TO SOLVE?

Millions of American college students depend on federal financial aid to afford higher education, and processing that aid requires massive, reliable technology systems. Without these systems, the government could not reliably deliver loans and grants to students in time for them to pay tuition and fees.

WHO BENEFITS?

College students across the country who receive federal financial aid benefit directly, as do the universities and colleges that rely on timely payment of that aid. Accenture employees who work on this contract also benefit through employment.

WHAT ARE THE RISKS?

A single private contractor controlling such a critical government function creates a risk if that contractor underperforms, experiences a data breach, or faces other problems. At $1.5 billion over roughly ten years, there is also a risk that costs may not be well controlled or that the government may not get full value for its money.

WHAT HAPPENS IF FUNDING IS REMOVED?

If this contract were cancelled, the systems that process student loans and grants could be disrupted, potentially delaying or stopping financial aid payments to millions of students. The Department of Education would need to quickly find another way to manage these systems, which would be extremely difficult to do on short notice.

ARGUMENTS FOR

• •Federal student aid reaches millions of students each year, and a professionally managed technology system helps ensure those funds are delivered accurately and on time.
• •Hiring a specialized private firm allows the government to use experienced technology experts without having to hire and train a large permanent federal workforce for a complex technical job.
• •The contract also supports older, discontinued aid programs, ensuring that past recipients still receive proper service and that records are maintained correctly.

ARGUMENTS AGAINST

• •Awarding a single, decade-long contract worth $1.5 billion to one company reduces competition and may limit the government's ability to negotiate better prices or switch to a better provider.
• •Relying on a private contractor for such a sensitive function, which handles personal and financial data for millions of Americans, creates potential privacy and security risks.
• •Critics may argue that the government could save money and maintain more control by building and managing these systems in-house rather than outsourcing them to a large consulting firm.