Each school discount rate is based on two factors:

1. the percentage of students eligible for the National School Lunch Program (NSLP)
2. the "rurality" of the area where the school or library is located.

There are nine different ways to calculate the eligibility of students for the school lunch program. Any one of these factors will qualify a student as eligible. A student qualifies as "eligible" if he/she comes from a family which:

1. 1) Has a family income level that meets these NSLP criteria:
   
   

   Department of Agriculture Income Eligibility Guidelines Reduced Price Meals 7/1/06 - 6/30/07
   Household Size	Annual Income
   1	$ 18,130.
   2	$ 24,420.
   3	$ 30,710.
   4	$ 37,000.
   5	$ 43,290.
   6	$ 49,580.
   7	$ 55,870.
   8	$ 62,160.
   For each additional family member, add $6,290.

   The criteria for determining the school discount percentage for the E-Rate program is satisfied by using the guidelines for reduced price meals.

   These guidelines are for eligibility for reduced price meals in the 48 contiguous United States, District of Columbia, Guam and the Territories. Cost of living adjustments are provided for Alaska and Hawaii. For complete information about federal poverty guidelines for Alaska and Hawaii, as well as guidelines for free meals, consult the US Department of Agriculture's Food and Nutrition Service website at http://www.fns.usda.gov/cnd/Lunch/Default.htm.

2. Receives Aid for Dependent Children (ADC) benefits
3. Receives food stamps
4. Receives Medicaid
5. Receives Supplemental Security Income (SSI)
6. Receives federal public housing assistance, such as Section 8
7. Participates in the Low Income Home Energy Assistance Program
8. Receives tuition assistance (if your school income eligibility criteria approximates NSLP guidelines)
9. Is a foster child

Once you have calculated the percentage of children eligible for the National School Lunch Program, you need to determine whether the area where the school is located is classified as "rural" or "urban." To determine urban/rural clssification, consult the SLD webssite tool that links to the government database by cllicking here.

After you have determined the percentage of students eligible to participate in the National School Lunch Program, and whether the applying entity is in a rural or urban area, consult the following table to arrive at a discount rate