Student financial aid programs play a critical role in the financing of postsecondary educational opportunities and in the nation's investment in human capital and potential.

Need-based financial aid programs are designed to ensure that all students, regardless of current economic circumstances and socio-economic background, have access to educational opportunities and training which will assist them in becoming informed and productive members of society and the workforce.

A report recently released by the Office of the Chancellor entitled "Making College Possible - A Status Report on Student Financial Aid Programs at the California State University Through the 1997/98 Academic Year" reveals that the persistence rates of financial aid recipients compare favorably with the graduation and continuation rates of the general CSU student population. The five-year persistence rate for first-time freshman financial aid recipients who entered in fall 1992 was 56.0, with 24.1 percent graduating by fall 1997 and 31.9 percent continuing enrollment during that term. California community college transfer aid recipients who enrolled for fall 1992 demonstrated a five-year persistence rate of 69.2, with 62.4 percent receiving a degree and 6.8 percent continuing enrollment for fall 1997.

One-year continuation rates, from fall to fall, for aid recipients as well as the general CSU student population have shown a gradual increase in the most recent years. The .811 continuation rate of fall 1996 first-time freshman aid recipients and the .792 rate for all CSU entering freshmen are significantly above the national average of .713 recently reported for all public four-year institutions.