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E-rate filing is a way that schools and libraries can take advantage of available discounts and reimbursements of telephone expenses. Public and private non-profit schools whose endowment does not exceed $50 million, and libraries are eligible for the E-rate program. The key to maximizing E-rate discounts for any applicant is to recognize that its discount rate is determined by student lunch program eligibility, not by lunch program participation.

The E-rate Program is administered by the Schools and Libraries Division  (SLD) of the Universal Service Administrative Company (USAC.)  USAC is an independent, not-for-profit corporation designated by the FCC as the administrator of the federal Universal Service Fund, which is maintained through contributions made by telecommunications providers across the country.

Income Measured by % of students eligible for NSLP

URBAN

LOCATION

E-rate Discount

RURAL

LOCATION

E-rate Discount

If the % of students in the school qualifying for NSLP is ...

... And the school is in an URBAN area, the E-rate discount will be ...

...and the school is in a RURAL area, the E-rate discount will be ...

 

Less than 1%

 

20%

 

25%

 

1% to 19%

 

40%

 

50%

 

20% to 34%

 

50%

 

60%

 

35% to 49%

 

60%

 

70%

 

50% to 74%

 

80%

 

80%

 

75% to 100%

 

90%

 

90%


Using the above matrix, if an urban school’s annual telecom bills* total $4,800 and it’s student eligibility for NSLP is from 1% to 19%, then that school would receive $1,920 in credits or reimbursements.  There are no restrictions on how a school or library can use the money it saves as
a result of these discounts or reimbursements.