Hartford resident Stephen H. Laurencin, 19, and West Hartford resident Alimahad A. Isa, 21, were arrested on the University of Connecticut campus Tuesday, the Hartford (Conn.) Courant reported Thursday.
Police said they found the bags of heroin in a laptop computer case in the vehicle Isa drove.
Laurencin told police he used drug money "to make money to help pay for college."
Both students are charged with conspiracy to sell heroin, conspiracy to possess heroin, possession of marijuana, possession of drug paraphernalia and possession of heroin with intent to sell.
Statewide Narcotics Task Force officials said they arrested the students after receiving a tip about Laurencin being involved in drug sales.
Laurencin reportedly was being held on $200,000 bail and is set to appear in court May 12. Isa was held on $25,000 bail and is due back in court April 30, the newspaper said.