The Universal Service Fund, or E-rate, is a landmark funding measure that will change forever the role of technology in K-12 education. The fund allows eligible schools and libraries to purchase networking equipment, telecommunication services, internal connections, and Internet access at substantial discounts. Accompanied by the 3Com E-rate Reference Disk and Internet references, this workbook is designed to be a complete resource, with all the information and references educators and administrators need to apply for funding through the federal $2.25 billion Universal Service Fund. The workbook contains the following sections: (1) E-rate Background; (2) Steps To Apply for E-rate Funding; (3) Completing E-rate Applications; (4) School Connectivity Options; and (5) Electronic Resources. The accompanying computer disk contains application and instruction forms, example of a good technology plan, guide to creating a technology plan and conducting a technology inventory, database to determine if a school is urban or rural for purposes of calculating the E-rate discount, database of state departments of education, and the Schools and Libraries Corporation's summary of the Universal Service Fund and procedures for obtaining support. (SWC)