Colorado Tution Credits Program
What is the rate of return on my investment?
Your rate of return from the Fund reflects the increase in average tuition at Colorado public colleges and universities between the time you contract with the Fund and the time your student goes to college. For example, if you purchase 400 tuition units (equal to four years of average tuition) based on today's prices, your investment is to be paid out based on four years of average tuition at the time your student attends college. That increase in value is your rate of return. Over the past 20 years, the increase in average tuition ranged anywhere from 1.5% to 18.9% per year (an average of 7.9%). This is historical data and does not predict what average tuition increases may be in the future.
What portion of my contract price is the administrative fee?
The average annualized administrative fee for 400 tuition units (equal to four years of average tuition) is less than 1%. This fee is included in your contract price.
Does my investment in the Fund reduce my child's eligiblity for financial aid?
No investment affects a student's eligibility for a scholarship based solely on merit (academic or athletic achievement). Most investments are likely to impact a student's eligibility for financial aid based on need. Financial aid rules change so often that it is impossible to know how assets will be treated in the future, or to depend on the future availability of financial aid. Investment in this Fund may affect the student loan type and amount for which your child is eligible. In fact, a goal of this Fund is to reduce the need to rely on borrowing to pay for higher education expenses.
Your Contract
What are tuition units?
Each tuition unit is equal to 1 percent of one year of the average tuition at Colorado's four-year public colleges, universities and state community colleges. For example, 100 tuition units is equal to one year of average tuition.
How do tuition units grow in value?
The value of your tuition units grows as average tuition increases. The Fund helps you keep pace with tuition inflation.
What safeguards exist for the Fund since it is not guaranteed by the State of Colorado?
The Colorado State Constitution does not permit the State to provide a guarantee for a long-term program.
Your investment in this Fund is supported by a stabilization reserve - not available with most other investments. Most investment opportunities are directly vulnerable to market
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