Discount Matrix

Why do some schools get 90% and some get 20%?

Schools with a higher percentage of low-income students get a higher percentage of E-Rates. Use the matrix below to estimate your school's potential discount.

Income (NSLP %)
Category One (C1)
Urban DiscountRural Discount
Category Two (C2)
Urban DiscountRural Discount
Less than 1%
20%
25%
20%
25%
1% to 19%
40%
50%
40%
50%
20% to 34%
50%
60%
50%
60%
35% to 49%
60%
70%
60%
70%
50% to 74%
80%
80%
80%
80%
75% to 100%
90%
90%
90%
90%
40%
Discount Rate

Schools with 1% – 19% low income students will receive a 40% E-Rate discount.

50%
Discount Rate

Schools with 20% – 35% low income students will receive a 50% E-Rate discount.

80%
Discount Rate

Schools with 50% – 74% low income students will receive a 80% E-Rate discount.

Category 1 Services

Telecommunications, internet access, and data transmission services. Discounts range from 20% to 90% based on need.

Category 2 Services

Internal connections, managed internal broadband services, and basic maintenance. Discounts range from 20% to 90%.

Determining your Discount Percentage
using the E-Rate Discount Matrix

In general, the school district, independent school or library calculation is the basis for discount calculations for all types of entities. To calculate the discount:

  • Determine the total number of students eligible for the National School Lunch Program (NSLP) or equivalent free and reduced lunch program.
  • Determine the total number of students.
  • Divide the first number by the second number to get the percentage of students eligible for NSLP or equivalent program.
  • Using this percentage and the urban or rural status, find the appropriate C1 and C2 discount for the school district in the discount matrix.

Each school and each eligible non-instructional facility (NIF) use the school district discount. If only one school in the district receives a service, or that service is shared among all or a subset of schools in the district, the discount level does not change.

The minimum that any entity could receive on Category One (internet service to the school or library) is 20% and the maximum is 90%. In other words, if none of your students are eligible for free and reduced lunch, your organization could still receive a 20% discount on your organization's internet services. If over 75% of your students are eligible for free and reduced lunch, your discount would be 90% off of your organization's internet services.

In addition, E-Rate also funds discounts for Category Two (Internal Connections Equipment and Services) that range from 20% to 90% – also dependent on the percentage of your students who are eligible for free and reduced lunch. Schools do not have to participate in the National School Lunch Program (NSLP) in order to validate their discount level, they only have to have a mechanism for determining how many of their students qualify for free and reduced lunch. There are many ways to do this: Surveys, Medicaid, SNAP, SSI, Federal public housing assistance or Section 8, LIJEAP (Direct Certs).

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