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Qualifying
for E-Rate Funding
A school qualifies for e-rate funding if it is a nonprofit public
or private K-12 school in the United States operating as a nonprofit business.
Libraries qualify if they are public.
In addition: Schools must meet the statutory definition of an elementary or
secondary school found in the Elementary and Secondary Education Act of 1965.
Private schools must not have an endowment exceeding $50 million.
Post-secondary schools (colleges, universities, community colleges, junior
colleges, adult education centers, post-secondary trade schools) do not
qualify for e-rate funding. To qualify, a library must be eligible for
assistance from a state library administrative agency under the Library
Services and Technology Act. A library must operate as a nonprofit business to
qualify. An academic library is eligible only if its budget is independent
from the budget of any institution of higher education. As you are preparing
to apply for e-rate money, it is important to keep in mind: That schools and
libraries must have a budget allocating funds to cover the nondiscounted
portion of the services requested. For example, if your school receives a 60
percent discount, you would need to have funds budgeted to cover 40 percent of
the cost of your eligible e-rate services. Your school or library will have to
certify that your technology plan has been approved before the actual flow of
money can occur.
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