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Discount Rate Optimization
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Common Errors:
E-Rate Central has seen the following types of errors in applicant calculations of discount rates:
1. A school district exhibiting significantly lower percentages of student "eligibility" in its high schools than in its elementary schools. This is almost always a case of using participation numbers. For a variety of societal reasons - none related to actual eligibility - high school students are much less likely to partake of free or reduced price lunches.
2. A private school applying for only the minimum 20% discount because it has no lunch program or has no access to equivalent data.
Practical Suggestions:
Obtaining lunch program eligibility data is often a lot more difficult than simply using participation data. Two practical factors are worth considering:
1. Particular attention should be paid to any school exhibiting poverty level indicators close to the transition points on the E-rate discount matrix (i.e., at 1%, 20%, 35%, 50%, and 75%). Finding a small incremental percentage of eligible students may not be that difficult, but could add 10% (or more) to the discount.
2. For public schools, in particular, extra work in validating higher E-rate discounts may yield data that could improve other aid ratios. In many cases, data collected to increase the present year's ratio also will be useful in subsequent years.
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