| 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. All K-12 schools
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.
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.
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. |