Peppers had already donated $100,000 in 2009 to the same scholarship program.
The Light on the Hill Society Julius Peppers Scholar receives an annual $1,000 award, renewable for up to three years. Other Light on the Hill Society Scholars receive a one-time $1,000 award.
In a statement issued Saturday by Peppers, he thanked University academic and athletic staff for their help and guidance while he charted a course for his life and expressed gratitude for the role the campus played in his growth and development.
"After considering the ways that I might be able to help young college students, I decided to continue my support of the Light on the Hill scholarship," Peppers said. "I would like to endorse this particular fund and encourage other former UNC students who have found success to reach back and assist the efforts of current and future Tar Heels."
At UNC, Peppers starred as a defensive end and won the Lombardi Award, given to the country's top college lineman. He was a unanimous All-American in 2001. He also lettered in basketball at Carolina and helped the Tar Heels' reach the 2000 Final Four.
Peppers was picked No. 2 overall in the 2002 NFL draft by the Carolina Panthers, where he played eight seasons. He is entering his third season with the Chicago Bears. He has been selected for seven Pro Bowls.
"This gift is indicative of the kind of man Julius Peppers has become," said Richard "Stick" Williams, chair of the Light on the Hill Society board. "I am very proud that he credits his experiences at Chapel Hill for helping to shape him."
The Light on the Hill Society scholarship effort began during the 2005 Black Alumni Reunion. Since inception, the program has awarded 26 scholarships: 22 Light on the Hill Society Scholars and four Julius Peppers Scholars.