Schools and libraries that apply for federal eRate discounts should be able to choose how their funding will be disbursed, and any unused or unclaimed funds should be carried over to the next funding year, according to school leaders and education groups who filed comments with the Federal Communications Commission (FCC) earlier this year.

In reviewing the eRate's rules, the FCC had asked members of the public for their feedback on several proposals by the agency to improve the program, as well as their own ideas for how to make the program simpler and more efficient.

The eRate provides up to $2.25 billion in discounts on telecommunications service and internet access to the nation's schools and libraries each year, but many applicants have chafed under its strict rules and complicated paperwork.

Besides streamlining the program, the FCC would like to reduce the occurrence of fraud, waste, and abuse. The agency also wants to ensure that funding is distributed fairly to those applicants who need it the most. During the last three program years, requests for discounts have exceeded the amount of funding that is available.

The deadline for submitting comments was April 5. The FCC received nearly 120 responses in all, and a sampling of comments posted to the agency's web site reveals that respondents overwhelmingly agreed on the following suggestions:

1. Applicants should be able to choose for themselves how they will receive eRate discounts—either by paying for services in full and then seeking reimbursement, or by paying only those portions of the charges not eligible for discounts when service begins.

Current program rules leave this detail to be worked out between applicants and their service providers. But because funding is disbursed directly to service providers, and not applicants, the potential exists for service providers to require applicants to pay for services in full and then seek reimbursement.

Requiring service providers to give applicants their choice of payment options makes sense and would not overly burden the providers, a large majority of respondents said. One respondent wrote, "I have seen too many schools not get reimbursement from the service provider due to bankruptcy." Others noted that service providers are free to take part in the eRate program at their discretion, and if they don't want to change their billing procedures to incorporate discounts on services as these services are delivered, they don't have to participate.

Several respondents noted that for applicants truly to have a choice in the matter, the Schools and Libraries Division (SLD) of the Universal Service Administrative Co.—the group that administers the eRate—must process all applications before the start of each program year, something that hasn't happened in any funding year to date.

2. The appeals period should be extended to 60 days, and successful appeals should be fully funded.