Janice Lozano
Getting a second bachelor's degree can be a great way to change careers, gain additional skills, or find a job that offers more long-term financial security. However, it can be expensive, and many students are unsure how to finance their education. While federal student loans are typically only available for a student's first degree, there are still ways to receive financial aid for a second degree, including federal grants, work-study programs, and private student loans. Students may also be eligible for funding if they did not complete their first degree or are pursuing a postgraduate qualification.
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What You'll Learn
Eligibility for federal student loans
If an applicant has previously received financial aid, there may be limits to what they can receive for their second degree. For example, Pell Grants, a popular federal grant, has a 12-semester limit. However, if an applicant's circumstances have changed since their first degree, they may now qualify for additional loan funding. For instance, if an applicant has gone from being a dependent student to an independent student, they may be eligible for more funding.
The amount of federal student loan funding one is eligible for is also determined by whether one is a dependent or independent student. Dependent students are those claimed by their parent(s) on their taxes, and independent students are those who are at least 24 years old, married, veterans, members of the armed forces, have their own dependents, are homeless, or meet other qualifications. For the 2025-2026 academic year, the aggregate federal student loan limit for dependent students is $31,000, with no more than $23,000 in subsidised loans. Independent students cannot borrow more than $57,500, with a cap of $23,000 in subsidised loans.
Additionally, to maintain eligibility for federal student loans, students may be required to be enrolled at least half-time. This also applies to keeping existing federal student loans in deferment while working on a second degree.
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Private student loan options
Private student loans can be used to help cover the costs of a second bachelor's degree. However, it is recommended to first maximize your other sources of financial aid and federal loan options. Here are some steps to help you navigate private student loan options:
Step 1: Understand Your Financial Aid Options
Before applying for private student loans, it is advisable to explore other sources of financial aid. This includes scholarships, grants, and work-study opportunities. Scholarships and grants are especially beneficial as they typically do not need to be repaid. Work-study programs can also provide a source of income to help finance your education.
Step 2: Assess Your Federal Loan Eligibility
Complete the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal student loans. Federal loans often have lower interest rates and more flexible repayment options compared to private loans. Your borrowing history from your first degree will impact your eligibility and funding amount for federal loans. If you are over the age of 23, your parents' finances will not be considered, and you will be considered an independent student.
Step 3: Compare Private Loan Options
If federal loans and other financial aid are insufficient, consider private student loans to cover the remaining costs. Review and compare different private lenders to find the best interest rates and repayment terms for your situation. Private lenders typically have no hard limits on borrowing amounts, but your loan balance, income, and credit score will be considered. Platforms like Edvisors and Earnest can help you compare private loan options without impacting your credit score.
Step 4: Understand Your Institution's Policies
Different schools have varying policies regarding transfer credits and tuition payment plans. Some institutions offer payment plans that spread tuition costs across multiple installments, making expenses more manageable. Understanding these policies can help you make informed decisions about financing your second degree.
Step 5: Explore Employer Benefits
If you are currently employed, check with your employer about tuition assistance options. Some companies offer benefits such as tuition reimbursement, professional development funds, or student loan repayment assistance, especially if your degree enhances your skills relevant to your current job.
Navigating private student loan options for a second degree requires careful consideration and planning. By following these steps, you can make informed decisions about financing your education and achieving your academic and career goals.
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Work-study and federal grants
Work-Study
Work-study is a form of financial aid from the government, similar to a grant. Unlike scholarships and grants, work-study aid is not given as a lump sum at the beginning of the semester. Instead, students are paid by the hour or by salary for part-time work. Undergraduate students are paid by the hour, while graduate and professional students can be paid by the hour or by salary. Students will earn at least the federal minimum wage, but the number of hours they are allowed to work will depend on their financial aid offer. Work-study jobs can include working in the school library, assisting professors with research, or working in the dining hall.
To be eligible for work-study, you must be enrolled as an undergraduate, graduate, or professional student, and enrolled in school at least part-time. Eligibility is based on financial need, including household income, family size, and the number of family members enrolled in post-secondary education. To apply, you must complete and submit the Free Application for Federal Student Aid (FAFSA).
Federal Grants
Federal grants are another form of financial aid that can be used to fund a second bachelor's degree. However, certain grants, such as the Pell Grant, impose limits on what you can receive for a second degree. Generally, you cannot receive a Pell Grant if you've already received an undergraduate degree. However, students enrolled in a post-baccalaureate teaching program may be eligible in some cases.
To determine your eligibility for federal grants, you must fill out the FAFSA form. This will help determine the types of aid you can receive, including federal loans, grants, and work-study jobs.
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Refinancing student loans
When refinancing, you may qualify for a lower interest rate, which can help you pay off your debt faster and reduce the overall interest you pay. It is important to note that refinancing federal loans into private loans means losing access to federal repayment programs and protections, such as income-driven repayment plans, loan forgiveness, and deferment or forbearance options. Therefore, it is crucial to carefully consider your options and understand the potential benefits and drawbacks before deciding to refinance your student loans.
There are several lenders that offer student loan refinancing options, including Earnest, SoFi, Citizens, and ELFI. These lenders provide competitive rates and flexible terms. When comparing lenders, it is important to consider not just the interest rates but also the repayment terms and monthly payments. Additionally, some lenders offer perks like autopay discounts or loyalty rewards. It is recommended to get prequalified with a soft credit check to see personalized rates from top lenders without impacting your credit score.
Before refinancing, it is essential to understand your financial goals and consider your current loan benefits. Refinancing may not be the best choice for everyone. If your current loans offer compelling benefits, such as federal protections or loyalty rewards, you may want to retain those benefits instead of refinancing. However, if you have private student loans, refinancing may not result in the loss of federal benefits. Additionally, if your credit score has improved, refinancing can help remove a cosigner from your loan.
In conclusion, refinancing student loans can be a powerful tool to manage your debt and achieve your financial goals. By comparing lenders, understanding your options, and considering your unique circumstances, you can make an informed decision about whether refinancing is the right choice for you.
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Alternative funding sources
If you've already used federal student loans to fund your first degree, you may be wondering what other funding sources are available for a second degree. Here are some alternative options to consider:
- Private student loans: These loans are offered by private lenders and can help cover the costs of a second degree. They typically have higher interest rates than federal loans and may require a credit check or cosigner.
- Scholarships and grants: Many universities offer scholarships and grants for students pursuing a second degree, especially in fields that are in high demand or for specific demographics. It's worth checking with the university you plan to attend to see what opportunities are available.
- 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.
- Employer sponsorship: If your second degree aligns with your career development, your employer may be willing to provide financial support or tuition reimbursement. Some companies even offer education programs that can help cover the cost of your degree.
- Nonprofit and community organizations: Certain nonprofit organizations and community groups provide educational grants or assistance for career changers. Reach out to local organizations that align with your goals to explore these options.
- Payment plans: Some institutions offer payment plans that allow you to spread out your tuition costs across multiple installments, making expenses more manageable.
- Refinancing: If you have existing student loans, you may consider refinancing them to get a lower interest rate or more favourable loan terms. This can help lower your monthly payments, but it may impact your eligibility for federal benefits.
It's important to carefully consider your funding options and explore all available opportunities before taking on additional debt. Combining different funding sources, such as scholarships, grants, work-study programs, and private loans, can help make your second degree more financially manageable.
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Frequently asked questions
Yes, it is possible to receive financial aid for a second bachelor's degree, which can include federal student aid like federal grants, work-study, and federal student loans.
You may be eligible for a maintenance loan and/or full tuition funding if you withdrew from or suspended your previous studies due to personal circumstances. Additionally, private student loans may help cover the costs of your second degree.
You can file the FAFSA for financial aid for a second bachelor's degree. The financial aid office will let you know about your next steps after your award acceptance and after you pay your enrollment deposit.
Federal financial aid and scholarships may not fully cover all your education expenses, so you might consider looking into private student loans.
If you've used financial aid to pay for college in the past, there may be limits to what you can receive. For example, Pell Grants have a 12-semester limit. Additionally, if you have a high loan balance relative to your income or credit score, banks and credit unions may be wary about lending to you.
