Hi S.! You've gotten a lot of varied and good responses here, so in the end, I think you're going to have to decide based on what you really want. Are you thinking you need to go back to school just for the $? As some moms suggested below, you might be able to do work through a temp agency and find a position that transitions into a full time job (my brother went this route). If you're looking at this as a long-term career move, then it might work for you to go to school. But otherwise it might involve too many trade-offs, like not enough $ to cover the child care and the stress of working and parenting. I don't think you need a college education to get a well-paying job, and sometimes (as you suggest) college doesn't lead to a job.
Or do you feel you need a college degree to get a good job or feel good about yourself? Is this something you're doing to fulfill a personal dream? Is this something you're doing FOR YOU to help you accomplish your dreams and follow your heart? Would you be choosing a profession that you care about, or at least a profession you think you could do well? Would it be something you'd be willing to sacrifice for? (I would ask whether you're interested in a 2-year, tech degree or if you want a liberal arts education--what will satisfy your needs in this regard?)
If it's a dream, then I think you should seriously consider college now or in the future b/c you're more likely to make it work than if you feel it's just something you have to do and you're settling for whatever position you think you can earn easily. I find that it's hard to make sacrifices for those kinds of half-hearted interests. And school will involve sacrifices.
College can be hard, especially for non-traditional students trying to balance families and fit into the college groove. A tech college might be a good alternative, but it will still require sacrifices (as you're already aware)--will the result be worth the sacrifices for you? Is this a long-term project such that you could go slowly (like 1 night class/semester) that would minimize your time commitment and allow you to do the work w/o making you and your family crazy in the meantime? And then with both kids in school go more extensively? Again, what would you be working for? Another plus to a tech/community college campus is the instructors are used to working w/non-traditional students and are more flexible than a traditional 4-year college/university.
As for the online option--my husband looked into such programs for his sister. He was very impressed w/Herzing College's program. They did offer a 2 year (full-time) degree for a medical records processor (something like that). They have a very good placement record and have a strong career placement center that you always have access to as a student. It's more expensive than some programs but similar to or cheaper than most traditional campuses. Doing online work would help take care of many of the scheduling problems.
In the end, I think it's really based on your goals--why you're looking into this, what you're willing to sacrifice, what your time-frame is, and what you hope to achieve. You've already put a lot of thought into this, and in the end, I think you could probably take any option if you know why you're doing it and are prepared.
I actually went to school for my PhD. I found my initial field was not something I could invest all of myself in at the expense of my family (I had 2 kids over the course of my 9-year degree). I switched fields I could enter w/my heart and was happy there but eventually decided to stay home w/my kids and try to write on my own (something I'm trying to work out now)--I was tired of the stress of teaching/working and being a mom. I would take seriously the other mom's post about how hard it is to do homework w/small children under foot.
I'm in the reverse position from you, but I would say it can be done--you can accomplish your goals. Sometimes getting a degree after kids is easier than getting one before kids, ESPECIALLY if you have a supportive partner/ spouse (and extended family close by is even better) and aren't trying to do it on your own. Just be sure you know what your goals are! Do something you believe in so that you can take the sacrifices involved.
Good luck w/your decision! J.