I deleted my original post and I am reposting this because my previous attempt was hijacked by advertising for a video.
If schools want e-rate money they must:
"as part of its Internet safety policy is educating minors about appropriate online behavior, including interacting with other individuals on social networking websites and in chat rooms and cyberbullying awareness and response."
What better way to do this than to set a social networking site on which to practice.
I think the social networking site could easily be a school or district set up social networking site, for use by the school(s) or district. In my opinion, this would probably be the best way, at least to start. Actually when I read that sentence, it states that we must educate them about, appropriate online behavior, including interacting.... it doesn't actually say that we have to provide access to any sites. After all, we do educate our students about sex, but we don't let them do it!