Higgins was born in Nouméa, New Caledonia to an Australian mother and American father. After attending Stanford University for one year, Higgins dropped out. He returned to Stanford to complete his bachelor's degree, in English, in 1967. He then went to UCLA, where he received an M.F.A. in screenwriting. His M.F.A. thesis would serve as the basis for Harold and Maude.

In 1986, Higgins established the Colin Higgins Foundation in order to further his humanitarian goals. He died of AIDS at his home on August 5, 1988 and was buried in Valhalla Memorial Park Cemetery.

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