The bill would ban students convicted of rioting from receiving financial aid and in-state tuition rates for a period of 12 months.
Admission to college could also be denied to students with prior riot convictions.
Colorado Rep. Don Lee, a Republican who proposed the bill, said it is being considered because of an increased rioting problem on campuses in the Colorado University system.
"There has been an increased pattern of riot activities in college towns," Lee said. "We feel people convicted of these behaviors should not have a subsidized education for 12 months."
Lee described the recent riots celebrating sporting victories as a "war-like situation."
He said the riots have caused tens of thousands of dollars in damage including the ceremonial burning of couches and trash cans.
Lee added that sometimes the riots have become violent, resulting in minor injuries and a fractured skull of a police officer.
Lieutenant Tim McGraw, Chief Administrator for the Colorado University Police Department in Boulder, said there have been more prevalent and frequent incidents of riots since 1997.
He said that since then there have been one or two riots a year on average, most of which resulted in light property damage.