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UW-Madison is a pretty competitive school and your prior grades may prove to be difficult to overcome. Nonetheless, you might want to try anyway. The worse they can do is tell you no. If you are considering UW, you should probably finish up at community college first so that you have a longer history of good grades to present to the admissions committee.
The only other institutions in Madison that offer bachelors degrees or higher are:
Herzing College: small school with an online program, it is regionally accredited (a good thing) with a heavy focus on tech degrees. They also offer a bachelors in business administration, legal studies, health care management, graphic arts, and public safety. Website: herzing.edu
Edgewood College: a regionally accredited small traditional liberal arts college that offers a full plate of degree programs including masters degree programs. I believe their admissions standards are fairly selective. They do not provide child care but they base their cost of attendance on a student's reasonable expenses, and child care expenses is one factor they take into consideration. Website: edgewood.edu
As for your situation... your mileage may vary, but I was in the same boat as you. I did not take my undergrad studies seriously, and my GPA shows it. But I was still able to get into a graduate program after I explained in my admissions essay that my priorities have changed. Having a 10-year work history between my departure from college and my application to grad school also helped a lot. One thing you've got going for you is a noticeable change in your grades. That will give the admissions committee concrete evidence of your claim that your attitude/approach has changed. When it comes right down to it, though... if you think you're going to consider any of these options, or if you think you're going to consider transferring to a different school altogether from the three in Madison, what you really should do is talk to an admissions advisor at the school you're considering attending. Best of luck to you!
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