Colorado’s College Opportunity Fund (COF)
by Marc R. Hill, CCPS, RFC®, CCFC, CAFC
Anyone considering college lately has been shocked by the rising cost of a college education. Budget cuts and other economic pressures have forced many colleges and universities to raise tuition rates. In fact, for the last several years, the nationwide increase in tuition rates has been about eight percent a year. That’s more than twice the annual rate of inflation.
In the 1940s, a typical year of college tuition cost about $400. Now a year of tuition costs as much as $30,000 at some institutions. Nationally, the average cost for a private four-year institution is about $24,000. Things look a bit better when you are considering a public institution, which averages around $6500.
Tuition is also only one part of the expense incurred to get a college education. Colleges also charge for room and board, educational fees, textbooks, and other expenses. The total of these expenses is frequently as much or more than the cost of tuition.
No matter how you look at it, college is getting more and more expensive. Students need to think creatively to help defray the costs for themselves and their families. Some ways to make college more affordable include student loans, work study programs, grants, and scholarships. For Colorado students planning to attend school in state, there is yet another option: The College Opportunity Fund.
About the Colorado College Opportunity Fund
In May, 2004, the Colorado State Legislature created the Colorado College Opportunity Fund. Rather than appropriate money to the colleges and universities for undergraduate college students, the state now sends the stipend directly to the participating university on the student’s behalf.
Since 2005, students have been taking advantage of this program to help defray the cost of a college education in the state of Colorado. After determining their eligibility and filling out an application, Colorado college students are on their way to getting an education at a reduced price.
Eligibility Requirements
So who exactly is eligible for this help? In order to take part in the program, students need to meet the following requirements:
Students must be a resident of the state of Colorado. Since the state is using money it would normally be providing directly to the college or university, only in-state residents attending Colorado colleges and universities are eligible for this program. Students must have graduated from a Colorado high school, received a GED from Colorado, or attended a home school in Colorado.
Income does not determine eligibility. The College Opportunity Fund is not a need-based program. In other words, your family does not need to make less than a certain amount of money for you to be able to participate in the program. Anyone who meets all of the eligibility requirements can receive the financial help, regardless of income.
Students can be degree-seeking, non-degree-seeking, or certification-seeking. Your area of study does not determine your eligibility for the College Opportunity Fund. Neither does whether you intend to receive a degree.
Students do not need to attend school full time to be eligible. If you are a part-time student, you are still eligible for the College Opportunity Fund. Full-time students are eligible as well.
The program applies to undergraduate students only. The state of Colorado funds graduate programs in a different way, so graduate students are not eligible for the College Opportunity Fund. The program is there to help fund undergraduate students’ education.
High school students enrolled in college programs are also eligible. Beginning in 2006, the program also contributed to the education of high school students who were simultaneously attending colleges and universities for credit. This does not apply to Advanced Placement courses or International Baccalaureate classes
Students attending private colleges must also complete the FAFSA (Free Application for Federal Student Aid). If you are attending a private institution, you must be eligible to receive a Pell Grant from the federal government. This does not apply to students attending public universities.
Applying for the Colorado College Opportunity Fund
The College Opportunity Fund is available only after successfully completing an application. This application only needs to completed one time in the student’s educational career, making this a simple but very important process. Applicants must be at least 13 years old.
If an otherwise eligible student does not complete the application for the College Opportunity Fund, that student will not receive financial help from the fund. In order to get help defraying the costs of a college education, every student needs to complete the application.
Only three pieces of personal information are required to complete the application. These are the student’s name, birth date, and social security number. This information, with the exception of the student’s name, will be kept private and will not appear on any College Opportunity Fund screens.
After completing the application, sign and date the form and mail it to the following address:
College in Colorado
1560 Broadway, Suite 100
Denver, CO 80202
Attention: The College Opportunity Fund
Common Questions About the COF Application
Although applying to the Colorado College Opportunity Fund is a fairly straightforward process, there are some common areas of confusion. Check out these frequently asked questions for help:
“I don’t have a social security number. What do I do now?” If you can legally obtain a social security number, you need to do so. If you can’t legally get a social security number, you must use the paper application to apply. In addition to your application, you will need to provide an Alien Registration Number.
“If I complete the application, does that mean I can attend the university of my choice?” Completion of the application does not mean you are admitted to a college. You must also apply to your college of choice, meet admission requirements, and be officially admitted to that college.
“Can I become a Colorado resident by completing this application?” Completing the application does not make you a resident of Colorado. Residency is determined by the college or university you are planning to attend. Contact that college or university with any questions you may have about your residency status.
“Does this mean I will always receive the stipend from the Colorado Opportunity Fund?” If you meet the eligibility requirements, you will receive a stipend. However, payments will always be dependant on the Colorado General Assembly. You will not need to complete this application again.
“When I have completed the application, does that mean I am eligible for financial aid?” Completing this application determines your eligibility for the Colorado College Opportunity Fund only, not other financial aid. You will need to complete the necessary application process to receive other aid. For assistance, talk to the financial aid department at the college or university of your choice.
“How can I contact the College Opportunity Fund personnel to ask other questions?” If you have any other questions, contact the College Opportunity Fund, or call (720) 264-8550 or (800) 777-2757 outside the Denver Metro area.
Course Eligibility for the Colorado College Opportunity Fund
Not all courses are eligible for stipends from the College Opportunity Fund. International Baccalaureate classes and Advanced Placement courses will not be covered as part of this program at this time. Additionally, courses which are not subsidized by the state of Colorado will not be applicable for the stipend from the College Opportunity Fund. Check with your college or university if you have questions about whether a course is eligible.
Eligible courses include most undergraduate classes, courses that contribute to a degree, courses that do not contribute to a degree, and some graduate courses taken by undergraduate students.
Lifetime Limits on Colorado College Opportunity Fund Eligibility
With a few exceptions, students are only eligible for 145 hours of attempted semester credit hours. This cap is cumulative. In other words, you must add up all attempted hours for all years of college. Hours taken at a college or university outside of Colorado will not be included in the lifetime limit of 145 hours.
This lifetime limit is adjusted for students who began college before July 1, 2005. Prior to that time, the state of Colorado was contributing to the colleges and universities, so the lifetime limit for these students may be reduced. To find out more about your specific lifetime limit, contact the college or university you will be attending or contact the College Opportunity Fund.
Why a College Education is Worth the Money
Don’t let the high cost of a college education keep you from making the right choices for yourself and your life. The Colorado College Opportunity Fund is here to help make college a reality for most Colorado students. Here are some reasons why college is such an important step in your life:
A bachelor’s degree pays off. People who hold a bachelor’s degree make an average of 60% more money per year than those who hold only a high school diploma. Although college is expensive, it pays for itself in the long term.
Be on the right end of the earning gap. Over the course of a lifetime, people with bachelor’s degrees make an average of $800,000 more than people with high school diplomas. Again, when you compare the cost of college against that $800,000, it doesn’t seem quite as expensive.
The state of Colorado wants to help make your college education more affordable. Find out more about the Colorado College Opportunity Fund by visiting their website or contact the College Opportunity Fund personnel for help by calling (720) 264-8550 or 1 (800) 777-2757 outside the Denver Metro area.
The author, Marc R. Hill, a certified college planner and founder of Reduce My College Costs, LLC, Inc. specializes in assisting parents reduce college expenses through implementation of tax, income and cash flow strategies. For more information send an e-mail to mhill@reducemycollegecosts.com.
