Getting Started
Many people in Colorado struggle with student loan debt after finishing college. The good news is that Colorado offers several ways to get some of your student loans forgiven, beyond what the federal government provides.
This guide explains Colorado student loan forgiveness programs, who can apply, and how to do it. We’ll look at programs for healthcare workers, teachers, and vets, plus federal programs and tax issues that affect Colorado borrowers.
What You Need to Know
- Colorado has special loan forgiveness programs for healthcare workers, teachers, and vets
- These state programs work with federal options to help cut your student debt
- Understanding who can apply and how to do it is key
- State offices like the Colorado Department of Higher Education can help you find programs
State-Level Student Loan Forgiveness & Repayment Programs
Colorado Student Loan Forgiveness Programs
Programs for Different Jobs
Colorado has several forgiveness programs for people who work in fields where workers are needed:
Colorado Health Service Corps (CHSC)
- Who Can Apply: Healthcare providers working in areas that don’t have enough healthcare workers
- What You Get: Money to pay back loans if you agree to work there for a set time
- Who Runs It: Colorado Department of Public Health & Environment (CDPHE)
- Rules: Must work full-time at an approved place and meet other rules
Colorado Educator Loan Forgiveness Program (CELFP)
- Who Can Apply: Teachers in areas with teacher shortages or rural schools
- What You Get: Up to $5,000 per year for 5 years
- Who Runs It: Colorado Department of Higher Education
- Rules: Must be a licensed teacher working in certain schools or teaching subjects where teachers are needed
Colorado State Loan Repayment Program (SLRP) for Rural Health
- Who Can Apply: Healthcare providers serving rural or areas without enough healthcare
- What You Get: Money to pay back loans based on how long you agree to work
- Rules: Must work at approved places and meet specific rules
Colorado Dental Repayment Program
- Who Can Apply: Dentists serving people who don’t have good access to dental care.
- What You Get: Money to help pay back dental school loans.
- Rules: Must agree to work with people who need dental care but have trouble getting it.
Colorado Veterinary Repayment Program
- Who Can Apply: Vets working in areas that don’t have enough animal doctors
- What You Get: Help paying back vet school loans
- Who Runs It: Colorado Department of Agriculture
- Rules: Must work in rural areas that need vets
Where to Find Information About These Programs
To find programs you might qualify for, check these places:
- State Websites:
- Colorado Department of Higher Education website
- Colorado Department of Public Health & Environment
- Colorado Department of Education
- Colorado Department of Agriculture
- Colorado Attorney General’s Office (Student Loan Ombudsman)
- Colorado State Government website (colorado.gov)
- Job Groups: Groups for teachers, healthcare workers, and other jobs often share information about loan forgiveness
- Employer Programs: Some Colorado employers, especially in public service or healthcare, offer help with loan repayment
Remember: Always check program details, who can apply, and when to apply directly with the state offices that run the programs. Details can change over time.
Federal Loan Forgiveness Programs for Colorado Residents
Public Service Loan Forgiveness (PSLF)
PSLF forgives the rest of your Direct Loans after you make 120 monthly payments while working full-time for certain employers. Colorado workers in public service should look into this option.
- Who Can Apply: People who work for government, non-profits, or public interest groups
- Rules:
- Must have Federal Direct Loans (or combine other federal loans)
- Work in public service full-time (at least 30 hours per week)
- Make 120 monthly payments under an income-based repayment plan
- Fill out forms to prove where you work
- Where to Learn More: StudentAid.gov
Income-Driven Repayment (IDR) Forgiveness
IDR plans can lead to forgiveness after 20-25 years of payments:
- Plans Include: SAVE, PAYE, IBR
- How It Works: Your payments are based on how much you earn, and any loan amount left after the payment period is forgiven
- For Coloradans: This federal program works no matter where you live or work
Teacher Loan Forgiveness Program
This federal program is different from Colorado’s teacher program:
- Who Can Apply: Teachers who work full-time for five years in a row at a low-income school
- What You Get: Up to $17,500 forgiven for certain subjects
- How to Check: Look at the Teacher Cancellation Low Income Directory to see if you qualify
Tax Issues with Student Loan Forgiveness in Colorado
Do You Pay Taxes on Forgiven Student Loans in Colorado?
Federal Level: Thanks to the American Rescue Plan, most forgiven federal student loans are not taxed through 2025.
Colorado State Level: Colorado usually follows federal tax rules for forgiven student debt. This means if your loans are forgiven through a qualifying program, you probably won’t pay state taxes on that amount.
Where to Get Tax Information:
- Colorado Department of Revenue website
- IRS guidelines on student loan forgiveness
Important Advice: Talk to a Tax Expert
Tax laws can change, and each person’s case is different. Always talk with a tax expert in Colorado for advice about your specific situation.
How to Apply for Loan Forgiveness in Colorado
Step 1: Research Programs
- Visit colorado.gov
- Check websites for state departments that run the programs
- Look at StudentAid.gov for federal options
Step 2: Check if You Qualify
- Look at rules for:
- Your job
- Your loan types (federal vs. private loans)
- Work requirements
- Income levels
- Proof of employment
Step 3: Get Your Papers Ready
Common documents you’ll need:
- Loan statements
- Proof of income
- Work certification
- Professional licenses
- Application forms
Step 4: Apply Correctly and On Time
- Check all information
- Meet all deadlines
- Keep copies of everything you send in
Step 5: Know About Taxes
- Check current tax rules for loan forgiveness
- Plan for possible tax effects
- Talk to a tax expert
Step 6: Use Colorado Resources
- Contact the Colorado Student Loan Ombudsman through the Colorado Attorney General’s office for:
- Help finding options
- Help with loan servicer problems
- Understanding your rights as a borrower
Step 7: Watch Out for Scams
Warning signs:
- Asking for money upfront
- Promises to erase your loans right away
- Claims of special connections with the Department of Education
Report anything suspicious to the Colorado Attorney General or the Federal Trade Commission.
Wrapping Up
Looking into all options for student loan help in Colorado—both state and federal—is the best way to cut your student debt. While these programs can seem confusing, knowing what’s available and taking the right steps can save you a lot of money.
Start looking into these resources today. Share this information with other Coloradans who have student loans. For updates about student loan repayment options and forgiveness programs, sign up for Student Loan Forgiveness Update newsletters. And don’t be afraid to ask for help from a financial advisor or tax expert when needed.
Common Questions
What are the main Colorado student loan forgiveness programs?
Colorado offers programs for healthcare workers (Colorado Health Service Corps), teachers (Colorado Educator Loan Forgiveness Program), rural healthcare providers (Colorado State Loan Repayment Program), dentists (Colorado Dental Loan Repayment Program), and vets (Colorado Veterinary Loan Repayment Program).
Where can I find information about these programs?
Check the websites of the Colorado Department of Higher Education, Colorado Department of Public Health & Environment, Colorado Department of Education, Colorado Department of Agriculture, and the Colorado Attorney General’s Office.
Will I pay taxes on forgiven student loan debt in Colorado?
Usually not. Colorado follows federal tax rules, which currently don’t tax most forgiven student loan debt through 2025. But always check current rules and talk to a tax expert.
What federal programs can Colorado residents use?
Colorado borrowers may qualify for Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR) forgiveness, and Teacher Loan Forgiveness.
Who should I talk to for help with student loans in Colorado?
Contact non-profit credit counselors, the Colorado Student Loan Ombudsman, financial advisors, or tax experts depending on what help you need.
Disclaimer
This information is for education only and is not financial, legal, or tax advice. Program details, requirements, and tax laws can change; always check with official sources. Information is current as of May 2023. The University of Colorado and other schools may also offer their own programs not covered here.