What is eRate? This may seem like a simplistic question for an eRate blog, but since we’ve had several people asking, let’s take a moment to post a basic overview.
eRate is a $2.5 billion annual grant program, funded by telecommunications companies and administered by the federal government, intended to help provide telecommunications and Internet access to schools and libraries throughout the United States. (Whew! I need a deep breath after that mouthful!) Schools with the highest poverty level receive the most funding, but every school and library can benefit with discounts and/or reimbursements on telephone and cell phone service, pager service, and Internet access (“Priority One” services). eRate funding also covers “Internal Connections” or “Priority Two” services – the fiber, servers, switches, and other network infrastructure that make the Priority One services possible. eRate does not, however, pay for the telephones, computers, and peripherals that make use of the infrastructure and services. Those items must be provided by the school or library. While that doesn’t seem to make much sense on the surface, the idea is that schools won’t ask for more funding than they need to support the computers and phone systems that they can afford. It hasn’t always worked out that way, but that’s the idea.
Unfortunately, there has been a good deal of abuse of eRate funds; sometimes school administrators have greedily attempted to stockpile hardware for the future or to request funds for servers stating they will be used for one (eligible) function, when, in reality, they are used for another (ineligible) purpose. Other times, unscrupulous vendors have inflated prices on package deals, delivering quotes that show only the eligible equipment, but providing the ineligible products for “free.” Practices such as these have resulted in rule changes and audits intended to close loopholes, snare shysters, and generally clean up a program that has tremendous potential to help our schools provide educational opportunities for all of our kids.
If all this sounds confusing to you, don’t feel alone. The ever-changing rules, required forms, time lines, eligible and ineligible product lists and other red tape leave a lot of people spinning. But in spite of abuse and convoluted requirements, eRate funding has been a huge boon to schools, giving them the assist they need to step education into the century of technology. They just need to be sure to have someone dedicated to eRate to stay on top of the process. In some cases, schools designate an employee to be eRate Coordinator – but it isn’t a full-time job (although it is a year-round job!), so schools frequently elect to hire a professional eRate Coordinator. Either way, it’s also important to use vendors who are well-versed in the ins and outs of eRate… vendors like Able Information Technologies and STC (brief commercial plug).
eRate can be confusing, and it does take some effort, but every school can benefit with thousands of dollars in discounts for essential services, and many schools are able to finance the infrastructure they need to equalize the educational opportunities available to the students. Next time you receive your telephone bill (both traditional phone service and cell phone service), scan down through those small, enigmatic charges tacked on at the end of the statement – do you see the “Universal Service fees”? In the final analysis, you fund eRate through these charges on your phone bills; you make the educational opportunities possible – so stay tuned, and we will help you make the most of your investment!
Dana Hawman
Technical Communications Expert
Able Information Technologies, Inc.
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