Colorado Promise
Beginning in Fall 2024, students who attend public institutions and have family incomes of $90,000 or less may be eligible for a complete reimbursement of any out-of-pocket tuition and fees paid for their education. The Colorado Promise program expands on individual institutional promise programs and extends financial support to middle-income Colorado residents.
Program Details:
Students who begin their postsecondary education with enough dual or concurrent enrollment classes and/or Advanced Placement (AP) or International Baccalaureate (IB)/IB credits could use the remaining 65 credits to cover an entire bachelor’s degree free of charge, after receiving the tax credit reimbursement.
Students must first enroll in postsecondary within two years of graduating from high school.
Student Eligibility Criteria:
- Complete FAFSA or CASFA
- Family Adjusted Gross Income of $90,000 or less, as determined by the FAFSA or CASFA
- Colorado resident with an in-state tuition classification
- Classified as degree or credential-seeking
- Initially enrolled in public postsecondary within two years of high school graduation or equivalent
Semester Eligibility Criteria:
Eligible students can receive a tax credit for out-of-pocket tuition and fees paid at an eligible institution for terms or semesters in which they meet the following criteria:
- Have accumulated fewer than 65 credits at the start of term (excluding AP, IB, military credit, credit for prior learning and dual or concurrent enrollment)
- Completed at least six credits at the end of the term
- Earned a 2.5 GPA at the end of the term
- Student or family paid some amount in tuition and/or fees
Frequently Asked Questions:
How does this program interact with other financial aid and scholarships?
Colorado Promise is a last-dollar program and is not meant to supplant any services that state government or higher education institutions provide to support student affordability. State agencies and institutions should continue awarding financial aid and scholarships to eligible students, and students should continue to accept awarded grant aid in their financial aid package.
How do students take advantage of this program?
Students are automatically eligible to receive the tax credit if they meet all eligibility criteria; there is no separate application.
To ensure eligibility, students can complete a FAFSA or CASFA each academic year, complete at least six credits with a 2.5 GPA per term and attend an eligible Colorado public college or university.
Eligible institutions include community colleges, public four-year colleges and universities, area technical colleges and local district colleges.
How does the tax credit work?
This tax credit fully reimburses tuition and fees paid out-of-pocket by eligible students and their families. The higher education institution of choice will notify students if they are eligible for the program and how much was paid in qualified educational expenses for a given tax year.
To receive the credit, a student must file state income taxes and request the amount shared with the student by their institution. Each year, students will file taxes and claim the credit for tuition and fees paid in the prior academic year, not the current academic year.
What degrees are eligible for the program?
Eligible students can receive the tax credit reimbursement while working towards any undergraduate degree at an eligible Colorado public higher education institution, including a certificate, associate, or bachelor’s degree.
For most eligible students, a certificate and/or associate degree is covered by the program. In addition, students who begin their postsecondary education with enough dual or concurrent enrollment classes and/or AP/IB credits could use the remaining 65 credits to cover an entire bachelor’s degree free of charge, after receiving the tax credit reimbursement.
What happens if I take time off from my degree program?
If you are eligible for Colorado Promise and take time off from your degree program (such as not enrolling for one or more terms or semesters), you remain eligible for the tax credit when you return to your studies as long as you continue to meet eligibility criteria.
If I transfer colleges, can I still be eligible for the program?
Yes, as long as you transfer to an eligible public institution in Colorado, such as a community college, area technical college, local district college, or public four-year college or university.
If I complete a degree program, but still meet the eligibility requirements, can I continue to receive the tax credit?
Yes! Colorado Promise applies toward your first 65 credits for eligible students, regardless of whether you have completed a certificate, associate degree or another credential. You can continue to receive the tax credit until you reach the 65 credit cap.
Does a student request Colorado Promise? Or do their parents/ family?
Students should always request Colorado Promise, never their parents, guardians or through another individual. This is true for students considered independent and dependent on the FAFSA.
What if I have no tax liability or no income? Can I still file taxes and receive the credit?
Yes! This is a refundable tax credit, meaning eligible students will receive the full amount paid out-of-pocket for tuition and fees in eligible terms, even if that amount is larger than the student’s tax liability or total income in that tax year.
I don't usually file taxes. How do I claim the credit?
To claim the credit, you will file state income taxes for the tax year following the academic year(s) for which you were eligible.
For example, if you were eligible in Fall 2024 and Spring 2025 but would not otherwise file taxes, you should file your taxes in early 2026 for the 2025 tax year to claim the credit.
Additional guidance on this process will be provided in the coming months.
1098-T Tax Forms
You or your parents may be eligible to reduce your federal income tax liability by claiming a Hope Scholarship Credit or Lifetime Learning Credit. These tax credits are a part of the Taxpayer Relief Act of 1997 (TRA 97), which allows eligible taxpayers to claim a tax credit against their federal income tax for qualified educational expenses. In 2009, the Hope Scholarship tax credit was renamed the American Opportunity Tax Credit.
1098-T tax reporting forms are the IRS tax documents that universities are required to send to eligible students annually. The information on this form is used to determine eligibility for the American Opportunity Tax Credit. CSU annually emails eligible students in mid-January when this information is available on their RAMweb under the Tax Information link. Students who have not given electronic consent will will also receive the 1098-T form at their current mailing address before January 31 each year.
Students can grant 1098-T access to parents or other trusted individuals through RAMweb by navigating to the records page of RAMweb and selecting FAMweb from the student record options. If there is already access for billing information, grades, schedules, etc., check the Tax Information box. You may also add a parent or trusted individual to your FAMweb access list and then check the box for Tax Information.
Colorado State University staff does not provide tax advice. We urge you to learn more about these tax credits by consulting with your tax advisor or by reading IRS Publication 970.
