Peterson was an all-state selection as junior and senior at Bingham High School in South Jordan, Utah.
He led the National Junior College Athletic Association (NJCAA) in both passing yards and touchdowns.
He completed 16-of-25 passes for 224 yards and two touchdowns to lead the team to a 35–21 win over Colorado State in the Diamond Walnut San Francisco Bowl.
He started 10 games until missing the season finale due to a fractured second metacarpal in his right (throwing) hand late in the second quarter against Temple.
Peterson came back to complete 24 of 33 passes for 236 yards and two touchdowns in BC's 37–24 win over North Carolina in the Continental Tire Bowl before exiting the game in the second half with a broken leg.
Peterson signed with the Ottawa Renegades of the Canadian Football League (CFL) before the 2005 season.