E-Rate Discounts
Three factors determine the E-Rate discount rates for schools:
- Percentage of students in the school district who are eligible for free or reduced lunch via the National School Lunch Program
- Rural or Urban status USAC Urban/Rural Report Tool
- Whether the application is for Category 1 or Category 2 service.
The higher the Free or Reduced percentage, the greater the E-Rate discount, which is further increased for rural districts. USAC’s E-Rate Discount Matrix shows the discount rates for each combination of Free or Reduced rate and Rural/Urban status.
E-Rate discounts for libraries are determined by the discount rate of the school district they are located in.
If more than 50 percent of the schools in a school district or libraries in a library system are considered rural, the school district or library system is eligible for a rural discount. If 50 percent or fewer of the entities are considered rural, the school district or library system is eligible for an urban discount.
Alternative Discount Mechanisms
Schools that do not participate in the National School Lunch Program are allowed to collect alternative measures of poverty as a way of determining E-Rate discounts.