This document provides a fact sheet, status report, and questions and answers about E-Rate, the discount Educational Rate that schools and libraries will receive for the acquisition of telecommunication services. E-Rate is the result of a regulatory decision on Universal Service made by the Federal Communications Commission (FCC) on May 7, 1997. Starting in January 1998, schools and libraries will be eligible for up to $2.25 billion a year in discounts for a wide range of telecommunications services. Public and private K-12 schools and public libraries are eligible for the discounts. Schools and libraries will not receive the funds directly, rather they will realize the savings in the form of discounts, and service providers will be reimbursed for discounted services provided. Services covered include Internet access, internal connections to bring the technology into each classroom, and telecommunications services (such as voice and data service). Equipment, software, professional development, and asbestos removal are not covered. Discounts range from 20-90% based on economic disadvantage and geographic location, with an average discount of 60%. Economic need is determined by eligibility for the Free or Reduced Price Lunch Program. Application information and sources for further information are provided. (SWC)