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Discount Rate Optimization
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Introduction:
The level of E-rate discounts available to a particular school or library applicant is governed by the affluence of the community as determined by the percentage of students eligible for the National School Lunch Program (or an equivalent measure). Income eligibility guidelines for the NSLP generally increase each year.

Income eligibility guidelines for current and prior school years can be found below:

The basic E-rate discount schedule is shown below:
School and Library Discount Matrix
Students Eligible
for 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 %
Important:
The key to maximizing E-rate discounts for any applicant is to recognize that its discount rate is determined by student lunch program eligibility, NOT by lunch program participation.
Public schools calculating their discount rates on lunch program participation are not only shortchanging themselves, they are also shortchanging any local public libraries that are relying on the schools' E-rate eligibility data for their own discount rate calculations.
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