Tuition Fee Discounts and Tuition Fee Waivers
The Tuition Fee Discount program (also known as State University Grants) is a critical source of assistance for CSU students. Since its inception in 1982/83, the Tuition Fee Discount program has provided need-based discounts to offset the cost of mandatory systemwide tuition fees for resident students and the impact of increased charges for students with the greatest financial need.
Prior to 1992/93, the state provided the funds necessary to ensure adequate assistance was available for the CSU’s neediest students. Since 1992/93, the CSU has continued assistance to these students by forgoing one-third of annual revenue increases from tuition fees in most years.
The amount projected for 2014/15 Tuition Fee Discounts from tuition fee revenue is $624.8 million, an increase of $22.2 million from 2013/14. The Tuition Fee Discount adjustment is due to a one-third set-aside from tuition fee revenue derived from 5 percent enrollment growth (estimated 2014/15 marginal cost of $1,318 per FTES). This $624.8 million of financial aid reflects tuition fees that go uncollected—in effect, waived—and is a form of revenue loss for the CSU. In addition, the annual budget act earmarks $33,785,000 of the CSU’s General Fund appropriation for state funded institutional aid, bringing the projected combined total for 2014/15 to $658.6 million.
Under current law, there are three state-mandated tuition fee waiver programs: the California Veterans Waiver for children of disabled/deceased veterans (Education Code 66025.3), the Alan Pattee Waiver for dependents of deceased law enforcement or fire suppression personnel (Education Code 68120), and the tuition fee waiver for California residents who were dependents of victims killed in the September 11, 2001, terrorist attacks (Education Code 68121). In addition to state-mandated tuition fee waiver programs, other tuition fee waiver programs include waivers for employees and employee dependents pursuant to collective bargaining agreements. Other non-mandatory waivers have been established by CSU Board of Trustees policy and California statute that include programs for high school students and California residents age 60 years and older, among others. The state has not provided General Fund support for CSU tuition fee waiver programs since fiscal year 1992/93.
A summary of the total revenue forgone and applied to Tuition Fee Discounts and mandatory waivers from 2012/13 through 2014/15 is included in the Three-Year Budget Summary section. In the 2012/13 college year (fall, winter, spring, and summer), 12,250 tuition fee waivers were granted to CSU students. When tuition fee rates are applied to these waivers based on student enrollment status, it amounts to approximately $60.9 million in revenue forgone to the CSU.
2012/13 Systemwide Tuition Fee Waivers
|2012/13 Systemwide Tuition Fee Waivers|
|Employees and Dependents||2,955|
|Other Discretionary Waivers||635|
|High School Students in Special Programs||1,861|