To further the CSU’s mission to provide an affordable, high-quality education to all students,
the CSU created the State University Grant (SUG) program in 1982-83 to assist students
who have the greatest financial need. Each year, the CSU awards need-based grants to
eligible California residents and Dream Act applicants who enroll at CSU campuses in
undergraduate, postbaccalaureate, teaching credential and graduate programs. Financial
need is determined by the Expected Family Contribution (EFC) based on the Free Application
for Federal Student Aid (FAFSA) application. Financial need is determined for Dream Act
students through the California Dream Act Application. The SUG program has grown
considerably since its inception, from $4 million in 1982-83 to $701 million in 2021-22. Nearly
140,000 students received a SUG award in 2019-20. As tuition increased and state investment
in the CSU fluctuated, the CSU expanded the SUG program to help keep student costs to a
minimum. Currently, more than 10 percent of the CSU’s total operating budget is dedicated to
financial aid for students with the greatest need. The SUG program remains one of the largest
commitments in the CSU operating budget.