What is E-Rate?
The Telecommunications Act of 1996 expanded the obligation of telecommunications providers to make available discounted services to the nation's schools and libraries. This initiative became known as the E-Rate (Education Rate) program. The Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC) administer it. E-Rate program funded technology discounts to K-12 schools amounts to approximately $2.5 billion annually.Who is Eligible to Receive Discounts?
All K-12 schools and libraries are eligible unless they are for profit, or have endowments exceeding $50 million. An approved application is eligible for a minimum of 20% up to a maximum of 90% based upon the school’s participation in the National School Lunch Program (NSLP).| % of Students Eligible for the National School Lunch Program | Urban School Discount | Rural School Discount |
| Less than 1% | 20% | 25% |
| 1% - 19% | 40% | 50% |
| 20% - 34% | 50% | 60% |
| 35% - 49% | 60% | 70% |
| 50% - 74% | 80% | 80% |
| 75% - 100% | 90% | 90% |
Applicants are required to have a State approved Technology Plan before they can receive discounted services through E-Rate.
What Services are Eligible?
Eligible products and services under E-Rate fall into one of three categories: Telecommunications, Internet Access, and Internal Connections. Both the Telecommunications and Internet Access categories are considered Priority One services and are normally funded every year. Since School Loop offers “E-Mail” and “Web Hosting” services, We project that 75% of our services qualify for discounts under "Internet Access".
How much Funding can I Request?
As an example assume you selected a competitive bid for E-Mail and Web Hosting Services for one year for $20,000. Let’s assume that 60% of the service (or $12,000) is E-Rate eligible. Assuming you are an Urban School with an 80% discount, if approved by the SLD, you would receive a $9,600 discount off the original $20,000 cost.
How do I apply?
The application process takes one year. It starts July 1 and continues through June for services to be procured and implemented beginning the following July 1. The process consists of filing a variety of forms with the SLD within timelines and program regulations. (E-Rate Step-by-Step).
You may file your application using paper forms or by going on-line to the Schools and Libraries Division (SLD) website. (Examples of E-Rate forms for Funding of School Loop).
You may also use an independent consultant who specializes in assisting schools with E-Rate applications. (Need more help with E-Rate?)