CALCULATING THE DISCOUNT RATE

E-RATE DISCOUNTS

E-rate discounts are based upon two factors:

  1. the poverty level of students as determined by eligibility to participate in the National School Lunch Program (NSLP)
  2. the urban or rural designation

Applicants compare these two data points to the Discount Matrix to determine their overall discount percentage.

  1. For Category One, discounts range from 20% to 90% of the costs of eligible services.
  2. For Category Two, discounts range from 20% to 85% of the costs of eligible services.

DISCOUNT MATRIX

Discount Matrix

Use the discount matrix to determine a discount based on the percentage of
students qualifying for NSLP and the urban/rural location designation.

Category One
Discount Level		Category Two
Discount Level
% of students eligible for the National School Lunch ProgramURBAN discountRURAL discountURBAN discountRURAL discount
Less than 1%20%25%20%25%
1% to 19%40%50%40%50%
20% to 34%50%60%50%60%
35% to 49%60%70%60%70%
50% to 74%80%80%80%80%
75% to 100%90%90%85%85%

FACTOR 1: POVERTY LEVEL

Poverty Level Determination for Libraries

Libraries use the National School Lunch Program data for the school district in which the library is physically located. Library systems that have branches or outlets in more than one public school district will use the address of the central outlet or main administrative office to determine which school district the library system is in.

FACTOR 2: URBAN OR RURAL DESIGNATION

Definition of Urban and Rural

The definition of “rural” and “urban” is based on US Census data. An individual school will be designated as “urban” if it is located in an “Urbanized Area” or an “Urban Cluster” with a population of 25,000 or more as determined by the U.S. Census Bureau.

The FCC has indicated the following designations:

  • Populations under 25,000 are considered to be rural
  • Populations of 25,000 or more are considered to be urban

Library Urban or Rural Designation

Libraries take the urban or rural designation of whatever school district they are physically located in.

Library systems that have branches or outlets in more than one public school district will use the address of the central outlet or main administrative office to determine which school district the library system is in.