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Student Loans in Colorado

Average debt, state-specific forgiveness programs, and repayment strategies for Colorado borrowers in 2026.

Average Debt
$27,610
Monthly Payment (Std)
$314
State Tax Deduction
Yes
vs. National Avg
$4,390

Student Loan Overview for Colorado

Colorado borrowers carry an average student loan debt of $27,610, which is below the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, Colorado graduates would pay $314 per month and a total of $10,070 in interest over the life of the loan.

For borrowers seeking lower monthly payments, income-driven repayment plans like SAVE (formerly REPAYE) cap payments at 5-10% of discretionary income. Colorado residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Colorado Student Loan Forgiveness Programs

Colorado offers the Health Service Corps providing loan repayment for healthcare providers in underserved areas.

In addition to state programs, Colorado borrowers have access to all federal forgiveness programs including PSLF, Teacher Loan Forgiveness ($17,500 for STEM and special education teachers), and income-driven repayment forgiveness after 20-25 years.

State Tax Deduction for Student Loan Interest

Colorado conforms to the federal student loan interest deduction. Borrowers can deduct up to $2,500 in student loan interest paid during the tax year on both their federal and Colorado state income tax returns. This deduction phases out for single filers earning $75,000-$90,000.

Top Colorado Colleges & Average Debt

InstitutionAvg. Graduate Debt
University of Colorado Boulder$28,000
Colorado State University$26,000
University of Denver$35,000

* Debt figures are approximate averages for graduating students who borrowed.

Frequently Asked Questions

What is the average student loan debt in Colorado?

The average student loan borrower in Colorado graduates with approximately $27,610 in student loan debt. This is below the national average of $32,000.

Does Colorado offer student loan forgiveness?

Colorado offers the Health Service Corps providing loan repayment for healthcare providers in underserved areas.

Can I deduct student loan interest on Colorado state taxes?

Yes, Colorado conforms to the federal student loan interest deduction. You can deduct up to $2,500 in student loan interest paid on your Colorado state income tax return, subject to income limits.

What are the best colleges in Colorado for low student debt?

Among Colorado institutions, University of Colorado Boulder has an average graduate debt of $28,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in Colorado?

Your best plan depends on your income and career. Colorado residents earning under $50,000 should consider the SAVE plan for the lowest payments. Those in public service should pursue PSLF. Higher earners may benefit from the Standard plan or refinancing.

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