A Bill for an Act
Page 1, Line 101Concerning financial literacy requirements as a condition
Page 1, Line 102of high school graduation in public schools.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law encourages each school district board of education or charter school to adopt successful completion of a course in financial literacy as a graduation requirement. The bill requires successful completion of a course in financial literacy as a condition of high school graduation.
The bill requires submission of a free application for federal student aid or a Colorado application for state financial aid as a condition of high school graduation unless an exception applies.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) Ensuring all Colorado high school students complete a
Page 2, Line 4dedicated one-semester course in financial literacy before graduation is essential to preparing students for modern adulthood;
Page 2, Line 5(b) In collaboration with educators, administrators, policymakers,
Page 2, Line 6and community leaders, the Colorado department of education has
Page 2, Line 7developed rigorous state personal financial literacy standards and has
Page 2, Line 8made robust resources available to advance high-quality instruction in this vital subject area;
Page 2, Line 9(c) Research confirms that required standalone financial literacy
Page 2, Line 10courses taught in the eleventh or twelfth grade deliver the greatest impact
Page 2, Line 11by empowering students with comprehensive financial management skills at a time when they are most ready to apply the skills;
Page 2, Line 12(d) Research shows that education and training culminating in
Page 2, Line 13credentials such as industry certificates, trade school certificates,
Page 2, Line 14apprenticeships, associate degrees, and bachelor degrees, among other business and industry-based experiences, are necessary to earn a living;
Page 2, Line 15(e) Completion of the federal or state financial aid applications is
Page 2, Line 16a key component to understanding how additional education beyond high
Page 2, Line 17school can be financially supported. Additionally, completion of the
Page 2, Line 18federal or state financial aid applications, especially while students are
Page 2, Line 19still in high school, supports access to different career pathway options
Page 2, Line 20because financial aid is often the vehicle students use to pay for tuition,
Page 3, Line 1fees, equipment, and other expenses associated with additional training beyond high school.
Page 3, Line 2(f) Understanding how to access career-aligned resources and
Page 3, Line 3supports is integral to the way students and families navigate training and
Page 3, Line 4educational resources, which is why the free application for federal
Page 3, Line 5student aid is a critical component of the state's financial literacy quality
Page 3, Line 6standards. Financial literacy education and Colorado's individual career
Page 3, Line 7and academic plan can help families understand how to obtain federal or
Page 3, Line 8state financial aid to support students in pursuing additional education and career training.
Page 3, Line 9(g) In 2023, through the federal "FAFSA Simplification Act", the
Page 3, Line 10free application for federal student aid was simplified, reducing the
Page 3, Line 11number of questions from 100 to 30 and reducing the financial information needed on the application;
Page 3, Line 12(h) In 2024, the Colorado general assembly passed the Colorado
Page 3, Line 13promise tax credit, which makes students who attend public institutions
Page 3, Line 14and have a family income of $90,000 or less eligible for a complete
Page 3, Line 15reimbursement of any out-of-pocket tuition and fees paid for the student's
Page 3, Line 16education; however, students must fill out a federal or state financial aid application in order to qualify for the tax credit; and
Page 3, Line 17(i) Colorado students can magnify the impact of state investments
Page 3, Line 18in higher education by accessing federal money to pursue postsecondary
Page 3, Line 19education and by earning credentials to enhance the student's
Page 3, Line 20income-earning potential. It is estimated that Colorado students who
Page 3, Line 21complete federal and state financial aid applications can leverage more than $30 million in resources.
Page 3, Line 22(2) Therefore, the general assembly declares it is essential to ensure that prior to graduation, Colorado high school students:
Page 4, Line 1(a) Complete a course in financial literacy; and
Page 4, Line 2(b) Submit federal and state financial aid applications if students intend to seek postsecondary education credentials.
Page 4, Line 3SECTION 2. In Colorado Revised Statutes, add 22-1-104.9 as follows:
Page 4, Line 422-1-104.9. Teaching of financial literacy. (1) Satisfactory
Page 4, Line 5completion of a course on financial literacy, as defined in
Page 4, Line 6section 22-32-135, in the eleventh or twelfth grade that
Page 4, Line 7incorporates the standards on financial literacy developed by
Page 4, Line 8the state board of education pursuant to section 22-7-1005 (2.8)
Page 4, Line 9is a condition of high school graduation in the public schools of this state.
Page 4, Line 10(2) A school district or charter school may utilize any
Page 4, Line 11curriculum the school district or charter school has adopted
Page 4, Line 12pursuant to section 22-32-135, the resource bank created
Page 4, Line 13pursuant to section 22-2-127, or any other alternative programs
Page 4, Line 14or materials. Any programs or materials used in teaching a
Page 4, Line 15course on financial literacy must represent best practices and
Page 4, Line 16be developed using input from experts in the area of personal finances.
Page 4, Line 17(3) This section applies to students beginning ninth grade on or after September 1, 2025.
Page 4, Line 18SECTION 3. In Colorado Revised Statutes, add 22-1-148 as follows:
Page 4, Line 1922-1-148. Free application for federal student aid - Colorado
Page 4, Line 20application for state financial aid - graduation requirement -
Page 5, Line 1exception - standardized form - definitions. (1) As used in this section, unless the context otherwise requires:
Page 5, Line 2(a) "Colorado application for state financial aid" or
Page 5, Line 3"CASFA" means the application to determine student financial
Page 5, Line 4need and eligibility for state financial aid programs using FAFSA methodology, or any successor form.
Page 5, Line 5(b) "Free application for federal student aid" or "FAFSA"
Page 5, Line 6means the federal application used to determine student
Page 5, Line 7financial need and eligibility for federal student aid programs, or any successor form.
Page 5, Line 8(2) Submission of a FAFSA or CASFA is a condition of high school graduation in the public schools of this state.
Page 5, Line 9(3) (a) A student may graduate without submitting a FAFSA or CASFA if:
Page 5, Line 10(I) The student, who is eighteen years of age or older or
Page 5, Line 11is an emancipated minor, submits the standardized form created
Page 5, Line 12pursuant to subsection (3)(b) of this section to the student's
Page 5, Line 13school indicating that the student declines to submit a FAFSA or CASFA;
Page 5, Line 14(II) The student's parent or legal guardian, if the student
Page 5, Line 15is under eighteen years of age, submits the standardized form
Page 5, Line 16created pursuant to subsection (3)(b) of this section to the
Page 5, Line 17student's school indicating that the parent or legal guardian declines to submit a FAFSA or CASFA; or
Page 5, Line 18(III) A school counselor or other authorized school
Page 5, Line 19personnel authorizes the student or the student's parent or
Page 5, Line 20legal guardian to decline to submit a FAFSA or CASFA.
Page 6, Line 1(b) (I) No later than December 1, 2025, the department of
Page 6, Line 2education shall create a standardized opt-out form that each
Page 6, Line 3school district is required to adopt. The form must allow a
Page 6, Line 4student, if applicable, or a student's parent or legal guardian to
Page 6, Line 5opt out of submitting a FAFSA or CASFA pursuant to this section.
Page 6, Line 6(II) The standardized form must not include an inquiry
Page 6, Line 7about why a student, or a student's parent or legal guardian, declined to submit a FAFSA or CASFA.
Page 6, Line 8(III) The standardized form must include a notification
Page 6, Line 9that filling out the form does not prevent the student from submitting a FAFSA or CASFA in the future.
Page 6, Line 10(IV) A public school shall not make the standardized
Page 6, Line 11form available to students, parents, and legal guardians until
Page 6, Line 12the FAFSA or CASFA is officially open for the applicable school year.
Page 6, Line 13(4) Any money appropriated to the department of
Page 6, Line 14education for the implementation of this section may be used for the following purposes:
Page 6, Line 15(a) The maintenance of a financial aid resource bank and financial aid training programs;
Page 6, Line 16(b) Stipends for school counselors to provide financial aid training to students and students' family members; and
Page 6, Line 17(c) Collaboration with the department of higher
Page 6, Line 18education in its efforts to maintain the web-based financial aid
Page 6, Line 19completion tool to track the satisfactory submission of a
Page 6, Line 20FAFSA or CASFA and conduct student outreach pursuant to section 23-3.3-106.
Page 7, Line 1(5) The department of education and each school district
Page 7, Line 2shall maintain strict standards for student data privacy
Page 7, Line 3related to this section and shall not publicly report individual student data obtained pursuant to this section for any purpose.
Page 7, Line 4(6) This section applies to students graduating during the 2025-26 school year and each school year thereafter.
Page 7, Line 5SECTION 4. In Colorado Revised Statutes, 22-32-135, amend (4) as follows:
Page 7, Line 622-32-135. Financial literacy curriculum - definition.
Page 7, Line 7(4) Pursuant to section 22-1-104.9, each school district board of
Page 7, Line 8education is
further encouragedsuccessfulPage 7, Line 9satisfactory completion of a course in financial literacy as a graduation requirement.
Page 7, Line 10SECTION 5. In Colorado Revised Statutes, 23-3.3-106, amend (2)(a)(III), (2)(a)(IV), and (2)(b)(II); and add (2)(a)(V) as follows:
Page 7, Line 1123-3.3-106. Technology to support FAFSA and CASFA -
Page 7, Line 12definitions. (2) (a) The department shall use technology to assist in
Page 7, Line 13increasing the number of students who complete the FAFSA and CASFA
Page 7, Line 14forms. On or before September 15, 2023, the department shall develop a
Page 7, Line 15tool kit and training outlining web tools and resources for use by higher
Page 7, Line 16education administrators, middle and high schools, and nonprofit
Page 7, Line 17organizations that support the completion of FAFSA and CASFA forms. The tool kit must include free resources, including:
Page 7, Line 18(III) Information for students who are the first in their family to
Page 7, Line 19attend college and how to navigate financial aid resources and application
Page 7, Line 20processes;
andPage 8, Line 1(IV) Public information available through state or federal entities; and
Page 8, Line 2(V) A user guide and getting started guide.
(b) The information in the tool kit must be:
Page 8, Line 3(II) Updated annually for educators and nonprofit organizations
Page 8, Line 4to support students and families in submitting completed FAFSA or
Page 8, Line 5CASFA forms pursuant to section 22-1-148 and in developing
Page 8, Line 6individual career and
educationPage 8, Line 722-32-109 (1)(oo) and 22-30.5-525 and career-connected strategies, such
Page 8, Line 8as work-based learning in support of financial literacy education and completion of the financial aid forms.
Page 8, Line 9SECTION 6. Act subject to petition - effective date. This act
Page 8, Line 10takes effect at 12:01 a.m. on the day following the expiration of the
Page 8, Line 11ninety-day period after final adjournment of the general assembly; except
Page 8, Line 12that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 8, Line 13of the state constitution against this act or an item, section, or part of this
Page 8, Line 14act within such period, then the act, item, section, or part will not take
Page 8, Line 15effect unless approved by the people at the general election to be held in
Page 8, Line 16November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.