Community college as a financial strategy?

A parent asked a lot of questions surrounding the concept of attending community college.:

-Pros/Cons of attending community college or a smaller, local university for first two years of studies with goal of obtaining Bachelor’s from a larger University.

-Is the savings and small step into college life beneficial?

-Is it harder to get accepted to a 4-year college with a two year transfer plan?

-Does the student apply for their dream college now and let admissions know they plan on the first two years elsewhere or does student apply after first two years are underway?

-Is this generally frowned upon or welcomed by admissions?

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As you can see there are a lot of very good questions here. Here's my take on it.

Community college is a good idea to gain credits WHILE still a high school student as dual enrollment. But that's a topic for another day.
Is it also a good idea as the first 2 years after high school IF AND ONLY IF the student does...
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