WHAT IS THE SCHOOLS AND LIBRARIES UNIVERSAL SERVICE FUND?
The Schools and Libraries Universal Service Fund, popularly known as the "E-Rate," was created as part of the Telecommunications Act of 1996 to ensure that all eligible schools and libraries in the United States have affordable access to modern telecommunications and information services.
HOW MUCH FUNDING IS AVAILABLE FOR THE PROGRAM?
The Fund is capped at $2.25 billion annually. Funding is provided by the telecommunications industry, following the long-established tradition for assuring affordable access to telephone service for all.
HOW IS MY DISCOUNT CALCULATED?
All K-12 schools (public and private) and public libraries qualify for the program and receive discounts according to their level of economic disadvantage (based on the percentage of students eligible for the national school lunch program) and their location--rural or urban.
| HOW DISADVANTAGED? | DISCOUNT LEVEL | |
| % of students eligible for the national school lunch program | Urban Discount | Rural Discount |
| 1 | 20 | 25 |
| 1-19 | 40 | 50 |
| 20-34 | 50 | 60 |
| 35-49 | 60 | 70 |
| 50-74 | 80 | 80 |
| 75-100 | 90 | 90 |
HOW DOES THE FUND WORK?
The Fund was created to make telecommunications services affordable for every school and library. A school or library will receive discounts of 20% to 90% on telecommunications services, internal connections, and Internet access. Discounts are applied to the full price, and the school or library will pay for the portion of the price after the discounts are applied. The portion of the price that is discounted will be paid from the program fund directly to the service provider.
WHAT DOES THE FUND COVER?
Universal Service Fund discounts can be applied to a school or library's internal connections, telecommunications services, and Internet access. Although the Fund will not pay for desktop computers, learning software, or teacher/librarian training, schools and libraries can use the funds they save on telecommunications infrastructure to support these elements of a comprehensive technology plan.
DO PRE-EXISTING CONTRACTS QUALIFY FOR DISCOUNTS?
Libraries and schools which have an existing contract signed before July 10, 1997 for telecommunications services and internal connections are eligible for discounts on their existing services as of January 1, 1998 for the life of the contract. Contracts signed after July 10, 1997 are eligible for discounts for the 1997 calendar year only, and must be rebid for future discounts.
HOW DO SCHOOLS AND LIBRARIES APPLY?
Applications for E-Rate discounts have been mailed to every school district and library system in the United States and additional applications can be ordered by calling 1-888-203-8100. Applications can be filed electronically (Ed NOTE: Now located at http://www.universalservice.org/default.asp) or completed and mailed to the Schools and Libraries Corporation, P.O. Box 4217, Iowa City, IA 52244-4217. All applications received within the first 75 days after the opening of the web site will be treated equally. After the "window" closes, subsequent applications will be processed on a first-come, first-served basis. Discounts must be applied for on an annual basis.
WHAT IS THE SCHOOLS AND LIBRARIES CORPORATION?
The Schools and Libraries Corporation is a newly formed not-for-profit organization established by the Federal Communications Commission to administer the Schools and Libraries Universal Service Fund.
WHERE CAN I OBTAIN ADDITIONAL INFORMATION ABOUT THE E-RATE?
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