E-Rate: Universal Service Program for Schools and Libraries

E-Rate is the common name for the Schools and Libraries Program of the Universal Service Fund, which is operated by USAC under the auspices of the Federal Communications Commission (FCC). The program offers discounts to help schools and libraries in the United States afford telecommunications and internet connectivity. Support discounts vary from 20% to 90% of the expenses of qualifying services, depending on the population's poverty level and urban/rural status. Schools, school districts, and libraries that are eligible may apply individually or as a consortium.

The Schools and Libraries Program requires applicants to supply additional resources, such as end-user equipment (e.g., computers, telephones, etc.), software, professional development, and other aspects essential to leverage the connection provided by the program.

According to nationally representative surveys conducted by the US Department of Education between 1994 and 1999, internet access in public schools increased from 35% to 95%, while classroom access increased from 3% to 63%.

Several studies have shown that the E-rate program has benefited schools. The Benton Foundation determined in a case study conducted in 2006 that E-Rate money had a direct influence on classroom Internet access in four locations. Goolsbee and Guryan's review of E-Rate in California revealed a 68% increase in classroom connection per teacher but failed to discover any effect on student success. A 2005 research conducted by a University of Texas student under the supervision of economics professor Mike Ward revealed that the E-Rate program in Texas school districts had a favorable impact on parameters such as test scores, graduation rates, and college admissions.

In this article, we will outline the following topics:

• What is E-Rate Funding?

• What benefits are available under the E-Rate program?

• How does the E-Rate program work?

• How are requests prioritized?

• What is E-Rate Category 1-2 ?

• How long does it take to obtain E-Rate funding?

• How many types of E-Rate forms are there?

• What is the eligible list for E-Rate in 2022?

• How E-Rate is related to CIPA?

• What is the history of E-Rate?

What is E-Rate Funding?

The Schools and Libraries Program of the Universal Service Fund, which is run by the Universal Service Administrative Company (USAC) under the auspices of the Federal Communications Commission (FCC), is more frequently referred to as "E-Rate". In order to provide American schools and libraries with cheap telecommunications and internet connection, the initiative offers discounts. It is one of four assistance initiatives supported by a universal service fee imposed on businesses offering domestic and/or international telecommunications services.

The connectivity - the conduit or pipeline- for communications utilizing telecommunications services and/or the internet is supported by the Schools and Libraries Program. Four service categories, telecommunications, internet access, internal connections, and basic internal connection maintenance, receive funding requests. Support discounts range from 20% to 90% of the price of qualified services, depending on the degree of poverty and the urban/rural status of the community served. Schools, school districts, and libraries that qualify may submit applications on their own or together.

In addition to the connection financed by the Schools and Libraries Program, applicants must offer end-user equipment (such as laptops, phones, etc.), software, professional development, and other components.

A federal program called Education Rate, or simply E-Rate, offers to finance to schools, libraries, and consortiums for two different categories of services: Category I (Internet Access) and Category II (Internal Connections, Basic Maintenance of Internal Connections, and MIBS).

The amount of funding depends on how many children attend your school and how many of them qualify for free or reduced-price meals. Your organization is entitled to greater funding for the more students that qualify for free and reduced meals. For Category I Services, these discounts range from 20% (no students eligible for free and reduced lunch) to 90% (over 75% of your students are eligible for free and reduced lunch), and for Category II Internal Connections and Services, they range from 20% (no students eligible for free and reduced lunch) to 85% (over 75% of your students are eligible for free and reduced lunch).

Schools and libraries must fulfill specific requirements to qualify for E-Rate savings. In general, as long as they are not-for-profit and have an endowment under $50 million, elementary, secondary, private, and religious schools are all qualified to get discounts. If public libraries and library systems satisfy the prerequisites for libraries, they are also qualified to obtain discounts. The E-Rate program divides eligible services into two categories: Category I and Category II.

What Benefits are Available Under the E-Rate Program?

To experience personally the benefits of technology in education, consider the top 5 most significant advantages of adopting E-Rate:

• Savings of 20-90%: Through a partner internet provider, a school may get savings of 20-90% on qualified services, depending on its needs and financial situation. The FCC estimates that 74 percent is the national average. This cost decrease could free up money that might be allocated to the school's other expenses, such as teacher salaries, supplies, and facilities.

• Students to Devices/Services at a Higher Level Due to Technology in the Classroom: A greater number of pupils will have access to the internet and online learning possibilities when technology in the classroom is more reasonably priced. In Lafayette, Louisiana, each student could purchase their own iPad or Chromebook by 2020 thanks to the school district's 80 percent discount. They thereafter are eligible to take part in state-wide testing programs as a result of this.

• Use of the Internet at School: Lack of adequate telecommunications infrastructure in many schools can result in "rationing" of tech-based services, such as live streaming, which might restrict or even end some learning activities. Many schools have been able to improve their technological capabilities thanks to E-Rate money, providing them with better access to instructional resources.

• Availability Where Students Need It: High-speed internet is out of reach for many American families, and those who live in rural locations lack access to internet service providers. For children in these situations, schools with dependable internet connectivity provide essential access to information and material. More schools are able to provide it because of E-Rate.

• Technology's Benefits for Education: Teachers and students connect more easily thanks to technology. A few benefits of connecting teachers and students are as follows:

• Better Tracking: Internet-enabled systems make tracking easier and let parents keep track of their child's development throughout the entire academic year.

• Greater Access: Thanks to technology, instructors provide information from almost anywhere, including live lectures, streamed from the cloud.

• 24/7 Learning Opportunities: Connections between students and teachers are possible outside of the four walls of the classroom and at irregular hours. Even after regular school hours, students get assistance with their schoolwork by asking questions and providing answers.

• Green Education: Online and web-based instruction are more "green" since it uses less paper and spare students from having to carry about a book for every topic they are studying.

Figure 1. E-Rate Funding & Its Benefits

How Does the E-Rate Program Work?

It's always early enough to start getting organized because obtaining E-Rate financing might take some time. Here is an overview of the E-Rate program and the 9 steps for a successful E-Rate Application:

• Access the EPC (E-Rate Productivity Center): Any billed organization must begin by submitting an application to the E-Rate Productivity Center (EPC) before submitting any applications to the Schools and Libraries Program. The primary site for submitting E-Rate applications and paperwork is EPC. You need to register your school or library in the EPC system before you can start the E-Rate application process.

• Decide what goods and services you require: You should decide the goods and services you wish to apply for once EPC is set up. The classifications of services are Category 1 (internet access/WAN services) and Category 2 respectively (Network Equipment, Basic Maintenance of Network Equipment, and Managed Internal Broadband Services - MIBS). Before the applicant submits any documents and, if at all feasible, before the application window opens, you should make these decisions. You might not always want to apply for every service; instead, you might only want to do so in select years. Between July 1 and June 30th, the E-Rate financing year is in effect.

• Make your vendor selection criteria known: You must create your vendor selection criteria before you can submit an E-Rate application. These are the standards by which you will assess each bid that you receive. Prior to filing your FCC Form 470, it is important to define your vendor selection criteria in order to get E-Rate reductions, receive services, and be in compliance with E-Rate requirements. You can begin the E-Rate application process once you have decided on your services and created your vendor selection criteria.

• Send in your FCC Form 470: The FCC Form 470, also known as the Description of Services Requested and Certification Form, is the initial application in the procedure. You submit the FCC Form 470 to inform prospective suppliers of the services you are interested in. The billed entity must wait at least 28 days after the FCC Form 470 has been lodged with the Universal Service Administrative Company (USAC) before choosing any suppliers or inking any contracts. This is the required waiting time during which you must accept bids from all prospective suppliers. Make sure you are adhering to the guidelines that govern the E-Rate program in order to conduct an open and fair process as you wait 28 days (minimum).

• Examine your offers and choose your vendors: You are now free to choose your vendor and execute contracts after filing your FCC Form 470, waiting your allotted 28 days, and conducting a fair and open competitive bid procedure. To choose the most cost-effective vendor, you must compare all valid bids to your vendor selection criteria. Keep in mind that choosing the most cost-effective provider is more important than choosing the cheapest.

• Send in your FCC Form 471: The Description of Services Ordered and Certification Form is an application for an FCC Form 471. The funding requests for services that qualify are included in the application that is sent to the Universal Service Administrative Company (USAC). For internet services, internal connections managed internal broadband services, or basic maintenance of internal connections, a billed organization must submit the FCC Form 471 in order to get services, earn E-Rate savings, and receive financing.

• Review and endorsement: USAC is entrusted with assessing and approving the filed E-Rate applications, which number in the thousands each year. Decisions are made that directly impact the Funding Commitment Decision Letter (FCDL), which specifies what was financed, through the Program Integrity Assurance review process. Applications submitted within the application window go through the Program Integrity Assurance review process, but they can also be retrieved for additional audits such as specific compliance checks or cost-effectiveness studies. Additionally, USAC retains the right to audit your applications up to ten years after the final date of service. As a result, be sure that your policies and practices for document preservation are sound and long-lasting. If policies and procedures are not adhered to, the Schools and Libraries Program has mandated that program monies be returned.

• The Children's Internet Protection Act and the Funding Commitment Decision Letter: You are almost ready to take advantage of E-rate reductions and get services once your application has been examined and you have received a Funding Commitment Decision Letter (FCDL). An FCC Form 486 must be submitted once you have received your FCDL. This document attests to the biller's compliance with the Children's Online Privacy Protection Act. Once the financing year starts, you will be prepared to start providing services, acquire goods and services, and start the billing process.

• Payment Process: You have two options for invoicing: BEAR or SPI. The Billed Entity Applicant Reimbursement (BEAR) option allows you to pay all of your bills in full as if the E-Rate had never been, and then submit an invoice to USAC in order to be reimbursed for the money that was granted based on your funding requests. Service Provider Invoice (SPI): Using the SPI option, you set up your accounts with service providers to earn direct reductions on your bills. The service provider will finish the invoicing process, and the billed entity will be responsible for paying the remaining balance of the invoice.

How are Requests Prioritized?

If there is more demand for E-Rate financing than there are funds available, the neediest schools and libraries receive funding first, followed by the next most needy applicants, and so on.

What is E-rate Category 1-2?

The Schools and Libraries Program, often known as E-rate, is a Universal Service Fund initiative created to assist public libraries and schools in gaining access to high-speed Internet and reasonably priced telecommunications services. Annual applications for qualifying services are accepted from public school districts and libraries, which can then purchase such services at a reduced price from service providers.

There are two categories for the services: Category 1 and Category 2. The Universal Service Administrative Company (USAC) describes Category 1 services as "services that give the fundamental conduit access to the Internet." "Necessary to allow high-speed broadband connectivity and broadband internal connections components" are category 2 services.

High-speed internet connectivity and telephony services are included in Category One. Schools and districts have the option of purchasing lighted fiber services as well as broadband subscriptions from internet service providers. As part of the FCC's modernization initiative, applicants are now permitted to utilize E-rate funds to rent dark fiber or construct their own high-speed broadband infrastructure if doing so is the most economical choice. For Category One services, the maximum discount is 90%.

Wireless access points and controller systems, routers and switches, and caching technologies are among the acceptable items under Category Two. For services in Category Two, the maximum discount is 85%. For expenditures totaling up to $150 (before the reduction) per student over a five-year period, schools may submit a Category Two financing application.

How Long Does it Take to Obtain E-Rate Funding?

The time it takes to obtain e-rate funding varies. Four to eight months after Form 471 is submitted, approval generally follows.

How Many Types of E-Rate Forms are There?

It might be frightening to apply for E-rate funding to get savings on internet and telecom access because of the numerous paperwork and stringent guidelines that must be followed. First, school administrators and IT must carefully plan the types of networking technologies they will require and determine when they will need them in order to go through the process. They shouldn't begin filling out the numerous documents that come next until they have it worked out. It's understandable that school administrators could feel a bit overwhelmed with the sheer number of E-rate forms that must be submitted over the course of a few months. That's why we want to describe different types of e-rate forms. Types of e-rate forms are outlined below:

• Form 470: We advise school districts to submit a Form 470 after determining the kinds of technology they will want (and having looked through the list of qualifying services). A competitive bidding procedure for the services the school district needs at a reduced price is started using Form 470. Schools and libraries can designate the services they need on one form or separate forms for each service. Applicants must wait 28 days after submitting Form 470, which is referred to as the Allowable Vendor Selection/Contract Date (ACD). Educational institutions must guarantee that all potential service providers have equal access to information.

• Form 471: Following the ACD, schools may submit Form 471, which is a list of the services requested from a particular service provider. Schools must have their signed contracts with the service provider they have selected before submitting Form 471. Form 471 applications should contain:

  • Client receiving services (specific school)
  • Discounted figures
  • Service prices
  • Service dates
  • Service supplier Schools must declare that they have followed rules in addition to providing a description of their offerings (i.e, the ACD).

• FCDL: The Form 471 filing triggers the start of the application review procedure. The form is reviewed by USAC's Program Integrity Assurance (PIA) reviewers to ensure its correctness and completeness. Applicants have 15 days to reply to any further questions that PIA reviewers may have for them. In order to ensure that someone is always available to respond to inquiries, we advise that numerous persons at a school be involved in the application process. Following the evaluations, USAC publishes a Funding Commitment Decision Letter (FCDL) detailing its conclusions regarding the funding requests made by the school. Schools can begin planning to accept the services once they acquire an FCDL.

• Form 486: Form 486 notifies USAC that services have begun and is also known as a Receipt of Service Confirmation and Children's Internet Protection Act Certification Form. After receiving the FCDL, this form is submitted. Schools must abide by the Children's Internet Protection Act in addition to stating that services have begun. Schools can accomplish this by outlining the network's content-filtering software. The postmark on Form 486 must be made no later than 120 days following the start of the services or 120 days following the date of the FCDL, whichever comes first.

• Form 472: Form 472, sometimes referred to as the Billed Entity Applicant Reimbursement (BEAR) Form, is delivered to USAC in order to receive a discount on qualified services. Once the school has received the services and made full payment for them, the paperwork must be sent in. Although services must be fully paid for, BEAR Forms can be filed monthly, bimonthly, quarterly, or yearly. Depending on which comes later, this form must be submitted 120 days after the final date for receiving service or 120 days following the date of the Form 486 Notification Letter.

• Form 498: Applicants must complete Form 498, which requests contact, billing, and remittance details, in order to be reimbursed by BEAR. Because only this form will permit BEAR payments, it is due at the same time as Form 472.

• Form 500: Form 500 must be filed whenever a school wants to change the financing obligations, the service dates, or both. Form 486 must still be completed by applicants to let USAC know that they would receive an invoice from the service provider, but Form 500 can be used to complete all of the following:

  • Change the start date of the service
  • Change the contract end date
  • A funding request number may be canceled.
  • A service delivery extension request
  • Notify USAC of a transfer of equipment A Form 500 cannot be submitted until the school obtains a commitment letter, much as a Form 486. Then, as soon as the applicant is made aware of the new circumstance, this form should be submitted.

What is the Eligible List for E-Rate in 2022?

Products and services that qualify for funding under the E-rate program are known as Eligible Services. The products and services covered by the E-rate program are listed in the Eligible Services List, which is released yearly. https://www.usac.org/e-rate/applicantprocess/before-you-begin/eligible-services-list/ has the most recent version of the list.

How is E-Rate Related to CIPA?

The subject of CIPA must be covered while talking about E-rate. The United States Congress passed the Children's Internet Protection Act in 2000. The CIPA regulations were subsequently made public by the Federal Communications Commission in April 2001. The legislation's goal is to shield kids from unpleasant or hazardous information online when they are at school or a public library. Because of the laws, educational institutions like schools and libraries are obligated to provide a secure atmosphere for learning.

There are no penalties for breaking CIPA, and compliance is not required. Organizations covered by CIPA may benefit from the E-rate program even if they are not required to declare that they have an Internet safety policy in place. Government-sponsored E-Rate scheme lowers the cost of telecom and information technology for businesses that lack sufficient funding or a solid tax base. Given that the discounts are being funded by tax monies, CIPA is justified in this situation.

What is the History of E-rate?

The federal universal service program, a mechanism for support established in 1934 to guarantee that rural customers have access to reasonably priced phone service, includes the E-Rate. E-Rate, which is supported by a bipartisan group of U.S. Senators and Representatives and is permitted by the Telecommunications Act of 1996, offers substantial savings on broadband, Internet access services, and internal Wi-Fi to public and private schools, as well as public libraries. The Federal Communications Commission (FCC) raised A-yearly Rate's funding maximum to $3.9 billion in 2014 to accommodate the program's rising need for assistance. Instead of being authorized, E-Rate funding comes from fees that are deducted from customer phone bills in conjunction with other universal service initiatives.

Since its introduction in 1998, E-Rate has significantly contributed to the provision of basic Internet access in almost all public school classrooms and libraries. In 2014, the FCC passed the E-Rate Modernization Order, which aimed to guarantee that all schools and libraries have adequate bandwidth so that students and patrons could utilize the abundance of online educational materials, tools, and services in addition to basic Internet access. The FCC concentrated E-Rate funding on making sure that all schools and libraries met high bandwidth requirements for reliable Wi-Fi access in order to achieve this aim. According to a report by Education Superhighway, schools are already making considerable strides toward improving classroom Wi-Fi connections, with the proportion of classrooms that fulfill Wi-Fi connectivity goals increasing from 30% in 2013 to 75% in 2016.

By enabling them to receive E-Rate support for the specialized construction costs and modulating electronics associated with renting dark fiber, as well as for developing and owning their own high-speed networks, the 2014 E-Rate Modernization Order also created new opportunities for rural and remote schools and libraries to gain access to high-speed external fiber connections. By enabling them to earn more E-Rate funding when their states provide greater support for broadband, the Order also promoted better external connections at schools and libraries. According to recent polls, these adjustments, together with more price transparency, may have contributed to the decrease in bandwidth costs from an average of $22 Mbps in 2013 to $7 Mbps in 2016.

How Zenarmor Helps You To Obtain E-Rate Funding?

The subject of CIPA must be covered while talking about E-rate, and organizations covered by CIPA benefit from the E-rate program.

Zenarmor helps you to obtain e-rate funding through CIPA. With Zenarmor, you can easily create Acceptable Use Policies that follow CIPA. Zenarmor's actual content filtering technology makes its next-generation firewall effective and efficient. You may build Internet Safety Policies that comply with CIPA by using the relatively simple policy management offered by Zenarmor, the best firewall for schools. The most current "go-to" option for educational institutions' content filtering and threat prevention requirements is Zenarmor, which is used by K-12 schools, colleges, school districts, and libraries in more than 100 countries. Zenarmor's powerful enterprise-grade content filtering technology, in contrast to simple web filtering solutions, enables companies to implement comprehensive security measures for identifying and thwarting malware and complex cyberattacks. With Zenarmor, you can simply and without installing any software on any device implement granular access restrictions. Through a cloud-based AI-powered database, Zenarmor offers real-time web classification for hundreds of millions of websites. Unknown websites are included in the 5-minute group. With Zenarmor, access restrictions may be used based on users and groups. The real-time threat databases identify thousands of communication protocols and data attributes to filter out malicious or undesirable traffic as well as cyber threats.