Funding Your Future: A Guide to Scholarships and Financial Aid for a Second Bachelor's Degree

For many, the pursuit of knowledge and career advancement doesn't end with a single bachelor's degree. Whether driven by a desire to change careers, meet specific licensing requirements, or acquire new skills, returning to school for a second bachelor's degree can be a strategic move. However, financing this endeavor can be a significant concern. This article explores the financial aid landscape for second-degree seekers, outlining available options and strategies to make education more affordable.

Understanding the Financial Aid Landscape

After going through all the work to finance your first degree, you may be wondering how the rules change as you begin to search for financial aid and scholarships for your second degree. Federal financial aid for a second bachelor’s degree is more limited than for a first degree.

Federal Aid Realities

Students with a prior Bachelor's degree are ineligible for the Pell Grant, Academic Competitiveness Grant, National SMART Grant, the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Teacher Education Assistance for College and Higher Education Grant (TEACH Grant) for a second Bachelor's degree. There is an exception for post-baccalaureate teacher certification and licensure programs in certain circumstances. Associate's degree recipients remain eligible for these undergraduate grant programs until they receive a Bachelor's degree. Students with a prior Bachelor's degree are ineligible even if the prior Bachelor's degree is from an unaccredited or foreign school. There is an exception if the college determines that the foreign degree is not the equivalent of a US bachelor's degree. Students seeking a second Bachelor's degree may still qualify for the Perkins Loan, Federal Work-Study (FWS), Stafford Loan and, if still dependent, the Parent PLUS Loan. Students may also receive the Stafford Loan for a second bachelor's degree up to any remaining eligibility under the undergraduate aggregate loan limits. Students who are seeking an Associate's degree but already have a Bachelor's degree are subject to the same restrictions.

The aggregate undergraduate loan limit for independent students is $57,500. If you borrowed heavily during your first degree, your remaining eligibility may be lower. This is where many returning students are surprised. Once you earn a bachelor’s degree, Pell Grant eligibility ends permanently, regardless of your financial situation. Because it is a campus-based program, availability varies by school, but students with a prior bachelor’s degree are not eligible. While policies can vary slightly by institution, work-study is typically reserved for students earning their first undergraduate degree.

The Continued Importance of FAFSA

Even though you are no longer eligible for most federal grants, FAFSA is required to access federal student loans. Because you already hold a bachelor’s degree, you are automatically classified as an independent student. Federal Direct Unsubsidized Loans are still accessible, allowing you to borrow up to $12,500 per year as an independent student.

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Because you already hold a bachelor’s degree, you are automatically classified as an independent student, regardless of your age. These loans are not based on financial need, and interest accrues while you are in school.

Exploring Scholarship Opportunities

Scholarships are the best resource to find financial aid for a second Bachelor’s degree. Applying to multiple scholarships increases your chances of success.

General Undergraduate Scholarships

Many undergraduate scholarships require that students are accepted or enrolled in an undergraduate program. You can also seek out scholarships that cater to students who have had an unconventional educational path.

Scholarships for Specific Fields

Professional organizations often offer funding for students entering fields like nursing, teaching, healthcare, and STEM. In particular, states facing workforce shortages may offer grants or scholarships for fields such as teaching, nursing, or healthcare. These awards are often merit-based or tied to specific departments or programs.

Institutional Scholarships

You can also talk to the school you are going to be attending directly. Students who come to North Park to complete a second bachelor’s degree may qualify for the Transfer Second Degree Scholarship, for which the annual amount is $12,000. North Park awards this to students who already received a bachelor’s degree with a minimum GPA of 2.75 out of 4.0. When you apply to North Park University, we will automatically consider you for merit scholarships based on your academic performance in high school. Most don’t require any special application; refer to the details below for specifics on each award. These merit scholarships depend on your academic performance at your previous institution and don’t require a separate application.

Alternative Funding Avenues

Employer Tuition Assistance

Many employers offer tuition reimbursement or education benefits, often up to $5,250 per year on a tax-free basis. Online and part-time programs make it easier to maintain employment, and employer tuition assistance can add even more support. If your career change aligns with your current job or industry, inquire about employer-sponsored education programs. Some employers offer tuition assistance or reimbursement for employees seeking additional education.

Income Share Agreements (ISAs)

While ISA’s are not super common, they are something that you may be able to use to help you fund your second undergraduate degree. An ISA functions very similarly to a student loan, with the difference being in how you pay that money back. After you graduate and find a job, ISA’s take a percentage of your pay each month until the amount you agreed to pay back is paid. For those who are planning to go into a field with high starting salaries, these can sometimes be a good option.

State Grants and Retraining Programs

Some states offer retraining grants through their one-stop career centers. Some states offer financial aid programs that can apply to a second bachelor's degree, especially if it's in a high-demand field. Check with your state's higher education agency for information on available programs.

Education Tax Benefits

The education tax benefits might help. The Hope Scholarship tax credit is limited to the first four years of postsecondary education, but the Lifetime Learning tax credit does not have such a restriction. Depending on your income and tax situation, you might be eligible for educational tax credits like the Lifetime Learning Credit or the American Opportunity Credit.

Strategies for Minimizing Costs

Community Colleges and In-State Institutions

Community colleges tend to offer very low cost degree and training programs. So if you are pursuing a second degree to gain or enhance job skills or change careers, look into the programs offered by your local community college. Tuition-free institutions like University of the People, online programs with reduced fees, and in-state public universities can significantly cut costs. Consider taking prerequisite or foundational courses at a local community college. Community colleges are often more affordable, and you can transfer credits to a four-year institution later.

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Credit Transfers and Accelerated Programs

General education requirements may already be satisfied, which reduces the total number of courses you need to complete. Investigate whether you can transfer any credits from your first bachelor's degree to your new program. This can reduce the number of courses you need to take and save you money.

Online and Part-Time Programs

Explore online degree programs, which can be more flexible and cost-effective. Many universities offer online bachelor's degree programs that might align with your career goals. Work while you study part-time to cover your living expenses. This approach may take longer to complete your degree, but it can reduce the financial burden.

When a Second Bachelor's Degree Makes Sense

It often makes sense when a new career requires a specific undergraduate degree, such as nursing, teaching, or engineering. For students who have a dramatic change in their career interests, a second bachelor’s might be necessary to achieve their goals. For example, a student who studies sociology and decides to go into medicine may decide to get a second bachelor’s in order to fulfill the prerequisites for med school. This is typically a very costly and time-intensive process, and so it is relatively uncommon, but it can be worth it for students who are in the right situation.

Alternatives to a Second Bachelor's

However, it is important to consider alternatives. In some cases, a master’s degree, professional certificate, or targeted training program may be faster and more cost-effective.

Navigating the Application Process

Contact them early to confirm how your prior degree affects aid eligibility. Before making any decisions, reach out to the admissions and financial aid offices of the university you're interested in attending. They can provide specific guidance on funding options and any available scholarships or grants for career changers.

Private Loans: A Last Resort

These loans are credit-based and offered by banks and private lenders. Interest rates may be higher than federal loans, and terms vary widely. While it's important to minimize debt, federal and private student loans could be an option if other funding sources are limited. Be cautious and borrow only what you truly need.

Additional Tips

Payment Plans

Payment plans do not charge interest like loans, which makes them appealing if you have a steady income.

Work-Study Programs

Some universities offer work-study programs that allow you to work part-time on campus while attending classes. This can help cover some of your expenses.

Nonprofit and Community Organizations

Certain nonprofit organizations and community groups provide educational grants or assistance for career changers. Research local options that align with your goals.

Assessing Return on Investment

Lastly, carefully assess the return on investment (ROI) for your second bachelor's degree.

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