In part 1, the brief history of the growth of PSCE under Pell Grant financing is reviewed. The loss of inmate-student Pell Grant financial aid eligibility was cited as the cause of the marked reduction in PSCE opportunities. One proposed funding alternative is phone-commission rebate programs. States receive rebate commissions from service providers for the collect-call inmate phone system. These phone-commission rebate monies have been shown to be sufficient to sustain PSCE programming when the will exists to use them for such; however, political priorities under budget constraints make such a funding source unstable. Another program, called the College-Level Credit Program, combines semester-based classroom instruction with equivalency examinations as the foundation of a college-level credit experience for qualifying prisoner-students. The equivalency examinations result in reduced classroom time and thus reduced costs. The For-Profit University Tax-Credit Donation Program is another funding scheme. This involves tax credits for individuals who donate up to a maximum amount of financial assistance ($2,000) to an inmate-student's education. The key to such a funding mechanism is the creation of a network that promotes a continuous contribution campaign. A variation of this scheme is the For-Profit University Donation Program, which involves the donation of education services valued at established market rates and delivered to prisoner-students in return for a tax credit. Until a more stable, nationally accessible renewable funding source is established for PSCE in correctional facilities, alternative and patchwork funding methods such as are described in this article will be necessary. 4 figures and 21 references