Which statement best describes E-rate?

• A. Eligible schools and libraries may receive discounts on telecommunications and services, internet access, internal connections and broadband services
• B. E-rate is a grant program for school construction projects
• C. E-rate funds must be repaid with interest
• D. E-rate provides tax credits to school employees

Answer: (A)

E-rate provides discounts to eligible schools and libraries for telecommunications services, internet access, internal connections, and broadband services. The key idea is that it helps lower the cost of connectivity, not to provide a construction grant or a loan. Funds are discounts funded through the Universal Service Fund and do not have to be repaid, nor do they offer tax credits to staff. The other statements misstate what E-rate does: it isn’t a grant program for construction, there’s no repayment with interest, and it doesn’t provide tax credits to employees.