1. Driven by passion according to him at the moment. Can proceed full time with scholarship. Do not mind the pay-cut factor.
2. Was told by general admission.
3. For funding, Yes. thanks for the information.

Overall the problem here is that he has a master degree w/o a basic degree which prevent him for getting a scholarship. But he got a full GPA nevertheless.

What country is your friend trying to study in? I'm assuming it isn't the UK as you are talking about GPA. If it's anything like the UK though, and most of the scholarships are provided by national research councils, then it might be worth checking their eligibility rules to see if they expressly rule out candidates without a first degree. If it's the funders' rules that are the problem, then there may be little a university can do.