Every school or library that participates in the E-Rate Program should know their Discount Percentage. The discount percentage for an E-Rate applicant is based on student eligibility for free and reduced lunch. The minimum that any entity could receive on Category 1 (internet service to the school or library) is 20% and the maximum is 90%. In other words, if none of your students are eligible for free and reduced lunch, your organization could still receive a 20% discount on your organization’s internet services. If over 75% or more of your students are eligible for free and reduced lunch, your discount would be 90% off of your organization’s internet services.