The State University Grant (SUG) Program is an important source of financial assistance for CSU students. Since its inception in 1982-83, the SUG program assists students with the greatest financial need. The CSU awards these need-based grants to eligible California residents and DREAM applicants who enroll at CSU campuses in undergraduate, post-baccalaureate, credential and graduate programs. Financial need is determined by the expected family contribution based on the FAFSA application.
For the first 10 years of the program, the state funded SUG awards. However, since 1992-93, the CSU funded the SUG program by setting aside a portion of new revenue generated from increases in tuition. SUG award amounts have increased in relation to systemwide tuition, and the total SUG pool has grown from $4.0 million awarded in its inaugural year to $701.2 million projected in 2018-19. Currently, the SUG program is about 11 percent of the total CSU operating budget, demonstrating the CSU’s commitment to keeping student costs to a minimum.