Can You Get Financial Aid for a Second Bachelor’s Degree?

Going back to school for a second bachelor’s degree can be a smart move, whether you are changing careers, meeting licensing requirements, or building new skills. The big question is usually how to pay for it. Financial aid does work differently the second time around, but that does not mean it disappears altogether.

While federal grants like the Pell Grant are no longer available once you have earned a bachelor’s degree, federal student loans are still an option. You can also combine loans with scholarships, employer tuition assistance, and lower-cost programs to make a second degree far more affordable. This guide explains what financial aid is available, what is not, and how many students successfully fund a second bachelor’s degree, including through tuition-free options like University of the People.

Key Takeaways

• Pell Grants are only available for a first bachelor’s degree, not a second one.
• Federal Direct Unsubsidized Loans are still available, up to $12,500 per year.
• Students with a bachelor’s degree are automatically considered independent for FAFSA.
• Scholarships, employer tuition assistance, private loans, and payment plans can help cover costs.
• Tuition-free institutions like University of the People offer an affordable path with only assessment fees.

FAFSA Eligibility For A Second Bachelor’s Degree

If you are pursuing a second bachelor’s degree, you can and should still file FAFSA.

Even though you are no longer eligible for most federal grants, FAFSA is required to access federal student loans. Many schools also use FAFSA to determine eligibility for institutional aid or state programs, so filing it keeps every possible option open.

In short, FAFSA is still the gateway to available financial aid, even with the limitations that come with having a prior degree.

Federal Aid Available For A Second Bachelor’s Degree

Federal financial aid for a second bachelor’s degree is more limited, but there is still one major option that plays a central role.

Federal Direct Unsubsidized Loans

Direct Unsubsidized Loans are the primary form of federal aid available for a second bachelor’s degree.

Because you already hold a bachelor’s degree, you are automatically classified as an independent student. Independent undergraduates can borrow up to $12,500 per year in Direct Unsubsidized Loans.

These loans are not based on financial need, and interest accrues while you are in school. Even so, they provide significant borrowing capacity and often make earning a second degree financially possible.

Independent Student Status Works In Your Favor

One advantage of pursuing a second bachelor’s degree is your FAFSA status.

Once you earn a bachelor’s degree, you are automatically considered an independent student, regardless of your age. This means you do not need to report parental income or assets on FAFSA.

Independent status also comes with higher annual loan limits, which can make a big difference when grants are no longer available.

Understanding Aggregate Loan Limits

While annual loan limits are higher for independent students, there is also a lifetime cap to keep in mind.

The aggregate undergraduate loan limit for independent students is $57,500. This total includes all federal loans you borrowed for your first and second bachelor’s degrees combined.

If you borrowed heavily during your first degree, your remaining eligibility may be lower. Before enrolling, it is worth checking how much of your lifetime limit you have already used.

Federal Aid That Is Not Available For A Second Bachelor’s Degree

This is where many returning students are surprised. Several major federal aid programs end once you complete your first bachelor’s degree.

Federal Pell Grants

Pell Grants are only available to students pursuing their first undergraduate degree.

Once you earn a bachelor’s degree, Pell Grant eligibility ends permanently, regardless of your financial situation. This is the biggest change for second-degree students and often the reason loans become the primary funding source.

Federal Supplemental Educational Opportunity Grants (FSEOG)

FSEOG is another federal grant program limited to first-year bachelor’s degree students.

Because it is a campus-based program, availability varies by school, but students with a prior bachelor’s degree are not eligible. Like Pell Grants, FSEOG does not carry over to a second undergraduate program.

Federal Work-Study

Federal Work-Study is generally not available to students pursuing a second bachelor’s degree.

While policies can vary slightly by institution, work-study is typically reserved for students earning their first undergraduate degree. As a result, federal employment-based aid is largely off the table for second-degree students.

Alternative Funding Sources For A Second Bachelor’s Degree

When federal grants are no longer an option, many students successfully combine other funding sources to pay for a second degree.

Scholarships For Second-Degree Students

There are scholarships specifically designed for career changers and returning students.

Professional organizations often offer funding for students entering fields like nursing, teaching, healthcare, and STEM. Many merit-based scholarships do not require you to be a first-time student, which makes them a strong option for a second bachelor’s degree.

Targeted scholarships can significantly reduce how much you need to borrow.

Employer Tuition Assistance

Employer tuition assistance is one of the most underused funding sources.

Many employers offer tuition reimbursement or education benefits, often up to $5,250 per year on a tax-free basis. Some companies even sponsor full degree programs tied to job advancement.

If your second degree aligns with your role or career path, employer support can make a major difference.

Private Student Loans

Private student loans are another option when federal loans are not enough.

These loans are credit-based and offered by banks and private lenders. Interest rates may be higher than federal loans, and terms vary widely. A cosigner can sometimes improve eligibility or reduce interest rates.

Private loans can fill funding gaps, but they are best used carefully and only after exploring all federal and scholarship options.

School Payment Plans

Many colleges offer payment plans that allow you to spread tuition costs over the semester or year.

Payment plans do not charge interest like loans, which makes them appealing if you have a steady income. Breaking costs into manageable monthly payments can reduce reliance on borrowing altogether.

State Financial Aid Programs For Second Degrees

State financial aid rules vary widely, but some states offer support for second bachelor’s degrees.

In particular, states facing workforce shortages may offer grants or scholarships for fields such as teaching, nursing, or healthcare. These programs are state-specific and often require service or employment after graduation.

Checking with your state’s higher education agency can uncover options that are not widely advertised.

Institutional Aid And School-Based Scholarships

Some colleges offer institutional aid to students pursuing a second bachelor’s degree.

These awards are often merit-based or tied to specific departments or programs. Private universities sometimes have more flexibility in offering scholarships to second-degree students, while public institutions may be more limited.

Because policies vary widely, it is worth contacting each school’s financial aid office directly to find out what is available.

Smart Strategies For Affording A Second Bachelor’s Degree

Beyond finding funding, choosing the right approach can dramatically lower the total cost of your degree.

Choose Lower-Cost Programs

Not all bachelor’s degrees cost the same.

Tuition-free institutions like University of the People, online programs with reduced fees, and in-state public universities can significantly cut costs. Some students also complete prerequisites at community colleges before transferring, saving thousands of dollars.

Lower tuition means less borrowing and faster payoff after graduation.

Transfer As Many Credits As Possible

Many second-degree students can transfer credits from their first bachelor’s degree.

General education requirements may already be satisfied, which reduces the total number of courses you need to complete. Fewer credits mean lower costs and a faster path to graduation.

Always ask about transfer credit policies before enrolling.

Work While You Study

Working while earning your degree can help reduce debt.

Online and part-time programs make it easier to maintain employment, and employer tuition assistance can add even more support. Continuing to earn income while studying often makes a second degree far more manageable financially.

Apply Broadly For Scholarships

Scholarships are not limited to first-time students.

Applying to multiple scholarships increases your chances of success. Focus on awards for career changers, adult learners, and students entering specific professions.

Every scholarship you earn reduces the need for loans.

Is A Second Bachelor’s Degree Worth It?

A second bachelor’s degree can be worth the investment in the right situations.

It often makes sense when a new career requires a specific undergraduate degree, such as nursing, teaching, or engineering. It can also be necessary for licensing or certification in regulated fields.

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. Comparing outcomes, timelines, and costs helps ensure you choose the best path for your goals.

Working With Financial Aid Offices

Financial aid offices can be valuable allies when you are pursuing a second bachelor’s degree.

Contact them early to confirm how your prior degree affects aid eligibility. Ask specifically about loan limits, institutional scholarships, payment plans, and any state programs you might qualify for.

Clear communication helps you avoid surprises and plan your finances with confidence.

Conclusion

Federal financial aid for a second bachelor’s degree is more limited than for a first degree. Pell Grants and most federal grants are no longer available once you earn a bachelor’s degree.

However, federal Direct Unsubsidized Loans are still accessible, allowing you to borrow up to $12,500 per year as an independent student. Scholarships, employer tuition assistance, state aid in some cases, private loans, and school payment plans can further reduce costs.

With careful planning and smart program choices, a second bachelor’s degree is financially achievable. Tuition-free institutions like University of the People make this path even more affordable by limiting costs to assessment fees that can often be covered with available loans.

FAQs

Can I get Pell grants for a second bachelor’s degree?

No. Pell Grants are only available for a first bachelor’s degree and are not offered for second undergraduate degrees.

How much can I borrow in student loans for a second degree?

As an independent undergraduate student, you can borrow up to $12,500 per year in federal Direct Unsubsidized Loans, subject to lifetime loan limits.

Am I considered independent if I already have a bachelor’s degree?

Yes. Once you earn a bachelor’s degree, you are automatically classified as an independent student for FAFSA purposes, regardless of your age.