Work out the discount
For CEP schools, enter the directly certified (identified) students. USAC multiplies them by 1.6, capped at the total.
The short answer
- The discount comes from the share of students eligible for the National School Lunch Program (NSLP) and whether the school is urban or rural. Category 1 reaches 90%; Category 2 tops out at 85%.
- A school district uses one figure for all its schools: total eligible students divided by total students. A library uses the figure of the public school district where its main branch is.
- For a CEP school, the eligible count is the directly certified students × 1.6, up to the total enrollment.
The matrix
| Students eligible for NSLP | Category 1, urban | Category 1, rural | Category 2, urban | Category 2, rural |
|---|---|---|---|---|
| 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% | 85% | 85% |
Tribal libraries in the top band get 90% for Category 2 from funding year 2024. Sources: USAC discount matrix; USAC, calculating discounts; USAC News Brief, January 29, 2015 (CEP multiplier).
Districts, libraries and consortia
- School districts. Total NSLP-eligible students divided by total students across the district, with the district's urban or rural status. Every school in the district uses that discount.
- Independent schools. Their own counts and the urban or rural status of their location.
- Libraries. The NSLP figure of the public school district where the main branch or main administrative office is, with the library system's urban or rural status. Every branch uses the main branch's discount.
- Consortia. The average of the members' discounts, rounded to the nearest whole number. For Category 2, each member's own C2 discount applies.
For a provider, the discount tells you how much of a project E-Rate pays and how much the applicant has to find. The C2 budget lookup shows a district's discount alongside the budget it has left.
Questions providers ask
What is the highest E-Rate discount?
90% for Category 1 and 85% for Category 2, for applicants with 75% or more of students eligible for NSLP. Tribal libraries in that band get 90% for Category 2.
How does CEP change the E-Rate discount?
A school on the Community Eligibility Provision uses its directly certified students multiplied by 1.6, up to its total enrollment, as the eligible count.
Is the calculator's answer official?
No. The applicant's discount is calculated in EPC from the counts it enters. Use this to estimate, and check EPC when a figure is close to a band edge.