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Average E-rate Discount Rate Up 8% since 1998

Analysis by Funds For Learning indicates that the average discount rate of schools seeking E-rate discounts has increased about 8% points since the program began. Based on Priority 1 funding commitments for schools:

  • In 1998, the average E-rate discount was between 59.3% and 64.4%.
  • In 2012, the average E-rate discount was between 67.9% and 73.0%

The measurement of the average discount rate varies slightly depending upon the method used:

FRN Method: Calculated based on the grand total of all P1 approved funding commitments divided by the grand total of all approved eligible pre-discount amounts for each funding year. This method emulates a student-weighted average and is useful for estimating the overall demand for E-rate funds on a year-to-year basis.

BEN Method: Calculated based on a simple average of each school applicant’s estimated shared discount rate. School applicants include school district applicants and individual school applicants


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