E-Rate
What is E-Rate?
The Federal Communications Commission administers a program aimed to ease the financial burden of high-speed telecommunication services for schools and libraries. The Universal Service Fund is a non-profit designated by the FCC which administers the Schools and Libraries Program. The Schools and Libraries Program, commonly called E-Rate, processes applications in order to approve and provide monies to eligible schools and libraries that qualify for reduced telecommunication service rates. For eligible schools and libraries, discounts on eligible services can range from 20% to 90% with higher discounts for higher poverty and more rural schools and libraries. Schools and libraries are always responsible for paying at least some part of the cost of service.
Is our school/library eligible for E-Rate?
Schools must meet the statutory definition of elementary and secondary schools found in the No Child Left Behind Act of 2001. Libraries must meet the statutory definition of library or library consortium found in the 1996 Library Services and Technology Act and must be eligible for assistance from a state library administrative agency under that Act. Consortiums made of schools or libraries are typically eligible as well. Non-traditional programs are also eligible for E-Rate. Headstart, pre-kindergarten, adult education, and juvenile justice programs are usually eligible as long as they are providing primary or secondary education. Buildings that service kids under the age of 3 are not eligible. This program does not fund any post-secondary education programs. Any school that wishes to participate in E-Rate must agree to a competitive bidding process for its services. This competitive bidding process is the first step in applying for eventual reimbursement for telecommunication service payments. A school or library will still need to pay its portion of services, but if approved through E-Rate, will have a discounted rate. The level of discount a school or library receives depends on its rural/urban status and how many students served also receive Free/Reduced lunch.
What is the process for filing for E-Rate reimbursements?
A public competitive bidding process for telecommunication services must take place to be eligible for E-Rate. An evaluation of all of the vendors who respond is required. After this has occurred and a contract is procured, there are forms to file that cover applying for your school or library discount on services. The application for reimbursement goes through a review by USAC called Program Integrity Assurance. USAC reviewers may ask for more support of your application before approving it through E-Rate. Questions may include verifying a number of basic items, to verifying budgets and verifying expenses. The inquiries all have timed deadlines for answers. After an application has gone through the inquiry process successfully, it is approved. Once approved, there are still more checks on the process. A school or library must confirm back to USAC that service has started (or equipment delivered) and that the school/library is compliant with the Children's Internet Protection Act. And still, once confirmation paperwork is submitted there is a process to begin receiving funds back from the FCC. It is a full year process filled with deadlines and nuances specific to your school district or library. If for some reason an application is rejected, there is an appeal process. For a flowchart of the entire work process, please click here.
What can be reimbursed?
There are two categories of telecommunication services that are eligible for E-Rate and there are items that are ineligible for reimbursement. In general, any end-user technology is excluded from reimbursement such as laptops, tablets, phone sets - any hardware that a student, teacher or administrative staff would use day to day is ineligible for reimbursement. Data transmission, internet services, and voice services are generally discounted and reimbursed. Internal connections, managed internal broadband service and maintenance of internal connections are usually reimbursed.
Why would I use a consultant for E-Rate?
While it is certainly possible that this process can be internally managed, the E-Rate application does require comprehensive oversight and dedicated time. Using a consultant significantly decreases your time spent on receiving reimbursement funds while ensuring important, non-movable deadlines are met.