The California State University (CSU) Board of Trustees today approved tuition increases for the fall 2017 term. Annual tuition for resident undergraduate students will increase by $270 and will generate $77.5 million in net revenue for student success initiatives including Graduation Initiative 2025. The tuition increases are the system’s first since 2011.

“The university faces a critical juncture where additional revenue is needed if we are to continue the trajectory that has seen campuses reach all-time highs in graduation rates,” said Steve Relyea, CSU executive vice chancellor and chief financial officer. “If our advocacy efforts do not result in adequately funding the trustees’ budget request, the revenue generated by this increase will allow us to add faculty, courses, advisors and other resources to improve students’ opportunities for success. This is not a course of action that is taken lightly. Through the university’s robust financial aid program we will ensure that students who require the most financial assistance will not face any additional burden associated with the tuition increase.”

Revenue generated by the increases will be directed to student achievement efforts including Graduation Initiative 2025. The initiative encompasses a set of strategies that will allow CSU campuses to double four-year graduation rates and eliminate all equity gaps for low-income and underserved students. With California currently on pace to fall one million bachelor’s degrees short of the number required for the future workforce, CSU campuses can graduate an additional 500,000 students over the next decade with sustained funding for the initiative.

Beginning fall 2017, the annual tuition rate for a full-time undergraduate student will increase to $5,742. Similar increases for non-resident tuition, as well as graduate, doctoral and teacher credential programs will also take effect next fall and details can be found here. The university remains committed to keeping costs as low as possible for students.

Through the university’s financial aid program, more than 60 percent of all CSU undergraduate students receive grants or waivers to cover the full cost of tuition. This results in more than 255,000 students not paying tuition. The increase will have no financial effect on this same group of students. In total, 80 percent of CSU students receive some form of financial aid – the university distributed more than $4 billion in aid in 2015-16.