2006/07 Support Budget

Financial Aid—State University Grants, $32,739,000

The 2006/07 Support Budget plan sets aside one-third of marginal cost fee revenue from enrollment growth for student financial aid.The CSU uses this revenue to increase the pool of funds available for its State University Grant program. One-third of marginal cost revenue associated with the 2.5 percent planned enrollment growth in 2006/07 is $6,238,000.

In addition, one-third of the total projected revenue from increases in State University Fee rates will be set aside to address the needs of CSU students with financial need. In addition to increasing the pool of funds in the CSU SUG program, revenue from this set-aside is also used, if needed, to fund statemandated fee waivers. For 2006/07, one-third of the revenue from an 8 percent increase in fee rates for undergraduates and students seeking teaching credentials and a 10 percent increase in fee rates for graduate and other postbaccalaureate students is $26,501,000.

The proposed 33 percent set-aside of fee revenue from enrollment growth and fee rate increases will be sufficient to accommodate the fee increases encountered by those CSU students who can least afford the cost of attending college. Following is a summary of the total State University Grant funding available from 2001/02 through 2006/07:

CSU State University Grant Program

The State University Grant program is unique to the CSU and, in recent years, has increased in prominence as a critical source of grant assistance for CSU students who can least afford the cost of attending college. Since its inception in 1982/83, the State University Grant program has provided need-based grants to offset the impact of increased charges for those students with the least resources to cover CSU fees and other educational costs. Student eligibility is determined on the basis of need established in accordance with the federal need analysis methodology.While the State University Grant program funding and the methodology for allocating funds to campuses concentrate on the mandatory systemwide State University Fee, it is important to note that needy students face other increases in mandatory institutional charges and other costs associated with college attendance that are recognized for student financial aid purposes.

Each year, campuses supply the Chancellor’s Office with a financial aid database report that is used to document the financial need of CSU students and to determine how limited State University Grant funds are allocated among the CSU campuses. The State University Grant awarding policy was modified effective with the summer 2001 term to provide campuses with greater flexibility to design financial aid strategies that best address the needs of their student population and their enrollment management goals. The metrics for assessing the need for State University Grants and allocating the available fund among campuses remained unchanged.


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Last Updated: November 11, 2005