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. It is administered by the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC). E-rate program funded technology discounts to K-12 schools amount 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, let's say that 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. If you are an Urban School with an 80% discount approved by the SLD, you would receive a $9,600 discount off the original $20,000 cost of the bid.
How do I apply?
The application process takes one year. It starts July 1 and continues through June of the next year 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 (see E-Rate Step-by-Step).
You may file your application using paper forms or by going online to the
Schools and Libraries Division
(SLD) website (see 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?)