South Cheshire College has become one of the first in England to register its in-house child-care scheme for the Government's nursery vouchers.
Cash from the Pounds 1,100 vouchers for four-year-olds will cover students' fees for the Starting Point Nursery and help to subsidise the cost of providing child care for those with younger children.
College director of student services Ros Reid said the Office for Standards in Education inspections required to win a place in the voucher scheme would help to maintain standards at the nursery, which also offers places to fee-paying members of the public.
Students on the college's child-care courses do work placements at the centre and visit the nursery as part of their courses.
Ms Reid said: "We are one of the first colleges to be officially validated to run the voucher scheme.
"The nursery has expanded from 16 to 26 places, and next year we are expanding the building to make more places available.
"It is heavily subsidised for students. The vouchers will completely fund a four-year-old for 33 weeks of the year. Their Pounds 1,100 vouchers will pay for five half-days a week.
"It will also mean we can help other students who do not qualify for the vouchers."