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how to write a financial need statement

How to write a financial need statement for your scholarship application (with examples!)

So you’re applying for a scholarship that asks you about your financial need. What do you say? How honest or specific should you be? What is TMI? In this article, we break down how to pen an awesome financial need scholarship essay or statement.

What to include in a financial need scholarship essay

Template to structure your financial need scholarship essay, introduction: your basic profile, body: your financial situation and hardships, conclusion: how you would benefit from this scholarship, was this financial need essay for a college financial aid application , now, reuse that same essay to apply for more scholarships, additional resources to help you write your financial need scholarship essay.

Writing a financial need scholarship essay

Many scholarships and college financial aid awards are “need-based,” given to students whose financial situation requires additional support. That’s why one of the most common college scholarship essays is a statement of financial need. This might be very explicit (“Explain your financial need”), somewhat explicit (“Describe your financial situation”), or quite open-ended (“Explain why you need this scholarship”).

In all cases, scholarship providers want to get a sense of your family’s financial picture: what your family income is, if you personally contribute to it (do you have a job?), and how much additional money you need to attend your target college (your “financial gap”).

If the essay prompt is a bit more open-ended (“Explain how this scholarship would help you”), your essay should probably be a combination of a financial need statement and a career goals / academic goals essay.  That’s because you want to show how the award will help you financially and in your academic or career goals.

Usually this statement of financial need is a pretty short scholarship essay (150-300 words), so unlike a college essay or personal statement where you have ample word count to tell anecdotes, you’ll likely need to get right to the point. 

Be sure to include: 

Also remember to write in an optimistic tone. Writing about your financial situation or hardships might not be the most positive thing to share. But you can turn it around with an optimistic tone by writing about how these challenges have taught you resiliency and grit.

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Student writing a financial need scholarship essay

Give a short introduction to who you are, highlighting any family characteristics that might make you part of an underrepresented group at college. 

“I am a first-generation American and the first in my family to go to college. My family moved from El Salvador to New York when I was seven years old, to escape the violence there.”

Example 2: 

“I am from a working-class family in Minnesota. My family never had a lot, but we pooled our efforts together to make ends meet. My parents both worked full-time (my father as a mechanic, my mother as a receptionist at the local gym), while my siblings and I all worked weekend jobs to contribute to the family income.”

Dive into the details. How are you currently planning to pay for college? The idea here is to show that you and your family have made a good-faith effort to earn enough money to pay your tuition, but that it has simply not been enough. 

Make sure you describe your parents’ occupation, any savings (like a 529 College Savings Account), and any student jobs. You might also discuss any sudden changes in fortune (e.g. parent fell ill or lost their job) that have ruined your original financial plans. 

Example 

As immigrants with limited English, my parents have had to accept low-paying jobs. My father is an Uber driver, and my mother is a housekeeper. They earn just enough to pay our rent and put food on the table, so I’ve always known they could not help me pay for college.  So I’ve been proactive about earning and saving my own money. Since age 11, I’ve worked odd jobs (like mowing my neighbors’ lawns). At age 16, I started working at the mall after school and on weekends. Through all these jobs, I’ve saved about $3000. But even with my financial aid grants, I need to pay $8000 more per year to go to college. 

Bring it home by wrapping up your story.  Explain how you plan to use the financial aid if you’re awarded this scholarship. How will you benefit from this award? What will you put the money toward, and how will it help you achieve your academic and/or career goals?

Scholarship review boards want to know that their money will be put to good use, supporting a student who has clear plans for the future, and the motivation and determination to make those plans a reality. This is like a shortened, one-paragraph version of the “Why do you deserve this scholarship?” essay . 

Winning $5000 would help me close the financial gap and take less in student loans. This is particularly important for me because I plan to study social work and eventually work in a role to support my community. However, since these jobs are not well paid, repaying significant student loans would be difficult. Your scholarship would allow me to continue down this path, to eventually support my community, without incurring debt I can’t afford.
My plan is to study human biology at UC San Diego, where I have been admitted, and eventually pursue a career as a Nurse-Practitioner. I know that being pre-med will be a real academic challenge, and this scholarship would help me focus on those tough classes, rather than worrying about how to pay for them. The $2000 award would be equivalent to about 150 hours of working at a student job. That’s 150 hours I can instead focus on studying, graduating, and achieving my goals. 

Sometimes this financial need statement isn’t for an external scholarship. Instead, it’s for your college financial aid office.

In that case, you’re usually writing this statement for one of two reasons:

Now that you’ve written a killer financial need scholarship essay, you have one of the most common scholarship essays ready on hand, to submit to other scholarships too.

You can sign up for a free Going Merry account today to get a personalized list of hundreds of scholarships matched to your profile. You can even save essays (like this one!) to reuse in more than one application.  

Writing a financial need scholarship essay

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How to Write a Statement of Financial Need

how to write a financial need statement

College is an investment, but for many students financial aid may not be enough to cover the cost. Because of this, students may find themselves needing to write a statement of financial need, which is a brief statement explaining your financial situation. Generally, the statement of financial need will go beyond what is captured by the FAFSA or CSS profile.

Many students want to know how to write a statement of financial need since it is a challenge. Deciding what is appropriate to include or omit can make all the difference, so it’s also especially important that you use your words economically and effectively. In this article, we will provide a step-by-step guide to show you how to write a statement of financial need.

We’ll start with a “Do’s and Don’ts” list. This list will answer questions you may have about which details to include in your statement. Once you’ve got an idea of what should be included, we’ll show you a general template for writing these statements, including some examples. This will help you illustrate your points thoroughly while staying under the word limit.

Related: Top need based scholarships

What to include in your statement

What to avoid in your statement

Related: What’s the best scholarship essay format?

Now that you know what to include in your essay, you’re ready to start writing your statement of financial need. This can be done by following a step-by-step process:

Create an outline

Write your introduction.

Finish with a strong conclusion

Let’s get started with the first step…

To get started with your outline, try writing out a bullet-point list of the details you’d like to include in your essay. Include all of the details that emphasize your financial need. This includes demographic information, your parents’ employment, and any extenuating circumstances your family is experiencing. Once you have that list, use it as a guide to help format the statement of financial need.

See also: How to write a 250 word essay

In your first sentence, introduce yourself by touching on some key demographic points about yourself. For example, you could write:

“As a first-generation college student who was raised by a single parent, I have worked as a cashier throughout high school to help pay the bills.”

These are all points that do not require too much elaboration. They can be brought up together in the first sentence to give the reader an idea of what they will be reading. Use the rest of the introduction to quickly lay out the discussion points, saving the detail for later.

Related: How to start a scholarship essay

Formatting your essay with body paragraphs

Body paragraphs are your opportunity to dive into the relevant details. Elaborate on the points that you mentioned in the introduction to give a more vivid picture of why you are having trouble paying for your education. These include extenuating circumstances, parents’ employment status, and your employment status.

In addition, you can use these paragraphs to help illustrate your sense of financial responsibility. If you have a college savings account or have taken initiatives to help yourself secure the funds for college, mention them here. Emphasize that there is still a gap between what you are expected to pay and what you are able to pay.

Also see: How to write a financial aid appeal letter

Now is the time to discuss how the increased funding would create opportunities for you. You can mention the internship that you would take if you didn’t have to work all summer to pay your tuition, or describe how one of your other financial hardships would be lightened by receiving this scholarship.

The conclusion is where you make the scholarship committee realize what they could do for you by granting you the scholarship; once you’ve established your need, use the conclusion to illustrate how important this opportunity is to you. We hope that you now know how to write a statement of financial need. Best of luck!

Submitting your statement of financial need is not a guarantee of more aid

We should also mention that submitting your statement of financial need is no guarantee that you will receive more financial aid. While students can be hopeful that they will receive an adjusted aid package, they should be prepared for their situation not changing. 

In this case, students can turn to options like scholarships , student loans , or choosing a more affordable college option. 

See also: What to do if financial aid is not enough?

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Financial Need Scholarship Essay Examples (2023)

Jennifer Finetti Oct 2, 2022

Financial Need Scholarship Essay Examples (2023)

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Many scholarships are awarded based on financial need. In order to win these scholarships, you must explain the nature of your financial need. In the guide below, we’ll explain how to write these types of essays to increase your chances of winning. Check out these scholarship essay examples for financial need scholarships.

How to write financial need scholarship essays

Here are some tips for writing financial need scholarship essays:

You know why you need financial aid. Tap into the key elements of your circumstances and use them to craft the perfect essay.

Many scholarships are awarded based on financial need. In order to win these scholarships, you must explain the nature of your financial need. In the guide below, we’ve provided examples of scholarship essays for financial need scholarships, along with some tips to help you write your own essay.

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Example 1: “Provide a statement of financial need”

Some scholarships will simply ask for a statement of financial need. There are no parameters to follow. You’re left to write whatever you want. Typically, a statement of financial need is two or three small paragraphs. This will come out to roughly 150-200 words, but it could be slightly longer. Think of this as a cover letter for your scholarship application, highlighting the key elements of your financial need. Don’t build up to the thesis. Get directly to the point.

I am the first person in my family to graduate high school, and thus the first to attend college. Both of my parents dropped out of school when they were teenagers. Because of their limited education, they have always worked in entry-level positions, earning barely enough to put food on the table. My first job I got was at the age of 12 delivering papers, and I have worked hard ever since to relieve pressure from my family. I enrolled in Mississippi’s HELP program during my senior year, which covers tuition and fees at select colleges in the state. I also have a Federal Pell Grant to cover my housing. However, I still need funding for books, supplies, and transportation to campus as needed. I am an engineering student, and our classes come with high fees. My parents cannot contribute to my college expenses, and I cannot work much while I’m in school. This scholarship would help me avoid costly student loans that could take years to repay.  

Example 2: “Describe your financial need in 100 words”

This essay is even shorter than the financial need statement. It may be one of several short answer questions you need to fill out. Working with 100 words is tricky. That only leaves room for about 7-10 sentences, depending on length. Make compelling statements using the fewest words possible.

Also note that grammar errors and misspellings will be much more noticeable in this short essay. Carefully proofread your writing before submitting the scholarship application.

I got pregnant and dropped out of high school when I was 15. By the age of 20, I had two more children, and we all shared a one-bedroom apartment. I worked three jobs to pay the bills, but I never earned much. When my oldest started high school, I did the same. I got my GED at 29 and enrolled in nursing school. My financial status has improved now with a GED, but I’m still a single mom with three kids. I want to become a registered nurse to give my children a stable future. I appreciate your consideration.

Word Count: 100

Example 3: “Explain your financial need in 500 or more words”

This scholarship essay prompt is the opposite of the one above. You have much more room to discuss your circumstances. Talk about your family life, your income, and other restraints that contribute to your financial aid . Try not to throw too much in the essay though. You want the information to flow together seamlessly. Edit carefully, and give the readers a full view of your situation.

My name is Brandon Noviello. I am a sophomore on track to earn my Bachelor of Arts in Sociology. I need financial aid because I do not have a family to contribute to my education. I was in foster care for two years before I aged out of the system, and now I am pursuing a degree completely on my own. I was raised by a wonderful woman who didn’t always have a wonderful life. My mother got pregnant after a sexual assault, but she was determined to raise a smart, successful man. She went through an accelerated program to graduate high school before I was born. She devoted the rest of her life to supporting me, both financially and emotionally. My mother’s family cut ties with her the moment she became pregnant. Life wasn’t easy for us, but I never wanted for anything. She always found a way to keep me fed, dressed, and in school. Unfortunately, she lost a long-term battle with depression when I was 16, and I was put into the foster system until I reached adulthood. I did not have a positive experience with foster care, but I admit, I had no desire to. My mother’s passing weighed heavily on my mind, and I felt an overwhelming sense of anger, regret, and frustration. There was one gleam of hope in my experience though. I had a great social worker. I fought her decisions every step of the way, and she still managed to find a family to get me through high school. My social worker was the only person I invited to my graduation ceremony.  She helped me realize how much one person’s efforts can make a difference in the lives of others. I was only one of countless children she had helped over the years. I researched how to become a social worker so I could help other children like me. My plan is to work with the Department of Human Services in the foster care and adoption division after I graduate. In order to make my dreams a reality, I need financial aid. I am working as a server to pay for food, utilities, and basic necessities, but I do not earn enough to pay for college as well. I go to school during the day and work at night. Furthermore, I have a maximum Pell Grant to cover most of my tuition, but I still need help with other expenses. I did not do well in high school as a result of my mom’s passing, but I have done well in college. I have a 3.25 cumulative GPA, and I have never made less than an A in a degree-related course. As such, I am committed to being successful despite my circumstances, and I want to help young people find that motivation within themselves. I look forward to working with children and teens in the foster system, so I can be the hope that someone else was for me.

Word Count: 498

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Jennifer Finetti

Jennifer Finetti

As a parent who recently helped her own kids embark on their college journeys, Jennifer approaches the transition from high school to college from a unique perspective. She truly enjoys engaging with students – helping them to build the confidence, knowledge, and insight needed to pursue their educational and career goals, while also empowering them with the strategies and skills needed to access scholarships and financial aid that can help limit college costs. She understands the importance of ensuring access to the edtech tools and resources that can make this process easier and more equitable - this drive to support underserved populations is what drew her to ScholarshipOwl. Jennifer has coached students from around the world, as well as in-person with local students in her own community. Her areas of focus include career exploration, major selection, college search and selection, college application assistance, financial aid and scholarship consultation, essay review and feedback, and more. She works with students who are at the top of their class, as well as those who are struggling. She firmly believes that all students, regardless of their circumstances, can succeed if they stay focused and work hard in school. Jennifer earned her MA in Counseling Psychology from National University, and her BA in Psychology from University of California, Santa Cruz.

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Financial Need Essay: Examples & Writing Guide

Unfortunately, not everyone striving for education can afford it. Some courses are so expensive that even well-to-do citizens need financial assistance. They can write a scholarship application letter or refuse the undertaking. In such a case, students are supposed to submit a financial need essay.

Our specialists will write a custom essay on any topic for $13.00 $10.40/page

Funding authorities cannot assist each student. That is why you need to assure them in your statement of financial need that you deserve the scholarship more than anyone else. This article by Custom-Writing experts provides you with a clear structure. Besides, you will see an accurate statement of financial need essay sample.

In a financial need essay, you should: introduce yourself, explain how you're now paying for college, justify your need, explain your potential benefits, and make a closing statement.

🔗 References

✅ statement of financial need: what to include.

This type of writing is a statement of a student’s life circumstances . But there is a limited number of aspects that you need to include. Otherwise, the committee will reject your request for financial aid as it will not look persuasive enough. Follow the next five steps to write a scholarship-winning essay. If you will still be unsure of how to write this kind of paper, explore the example in the next section.

Here, you can read about other secrets of scholarship essay writing .

🚫 Financial Need Essay: Mistakes to Avoid

There are several big mistakes that students can make in their scholarship essays.

👀 Statement of Financial Need: Essay Sample

We hope that this short, but comprehensive guide will get your essay going! Good luck and be sure to check out our blog for more writing tips.

✏️ Financial Need Essay FAQ

There is no universal way to justify why you need money. Every situation is unique. Every person might have their life circumstances. Typically, students apply for scholarships because they can’t work full-time yet. Thus, they cannot afford the desired program.

Two key strategies to ask for scholarship money are those below.

1. Write an impressive motivation letter mentioning your tight budget,

2. Write an application letter describing your tough life circumstances (especially if you have incomplete family, etc.).

For additional details, check examples of such papers online and in books.

Applying for a scholarship implies proving why you deserve this assistance. Demonstrate your strong motivation, your real passion for learning, describe your educational background. If you want to be chosen for the program, take a look at examples and templates available online. You need to highlight your strengths and motivation .

It’s probably a bad idea to begin with the statement of financial need itself. Instead, demonstrate your strong motivation and even passion first. Briefly describe your background and highlight relevant educational and work experience. Acknowledge that financial assistance would help you to develop further.

Thank you for the financial need essay writing tips you have posted. They are very helpful! I’ll return to this blog for more useful guidelines for writing papers!

Ha, fully posting! How to ask for money? Yeah, it is a great idea to write a financial need essay in a humorous manner.

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How to Write a Financial Aid Statement

Last Updated: February 1, 2023 References Approved

This article was co-authored by Michael R. Lewis . Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has 11 testimonials from our readers, earning it our reader-approved status. This article has been viewed 520,336 times.

The financial aid statement is a simple, short piece of writing that students may include on a financial aid letter, in an essay, or in other communications to a financial aid department. The financial aid statement may not be a full communication on its own, but rather an element of a more complex financial aid appeal. If you need to write such a statement in order to reach out to a university or college's financial aid office, follow some basic steps.

Sample Statements and Things to Include

how to write a financial need statement

Writing a Statement of Financial Need

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Writing a Statement for a Scholarship

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Making Your Personal Statement Successful

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About This Article

Michael R. Lewis

If you’re writing a statement of financial need, make it personal by sharing information about yourself and what's motivating you to pursue your studies. Try to be authentic, to write honestly about what you've already accomplished and what you hope to do with your education. Use specific examples if you can to reinforce the points you're trying to make. Finally, be sure to start your first draft early enough to get feedback from teachers or advisers and make revisions before you submit it. For more advice from our reviewer, including how to write a statement for a scholarship, keep reading! Did this summary help you? Yes No

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What is a statement of financial need?

how to write a financial need statement

A Statement of Financial Need is a document that students write to ask for financial aid such as grants or scholarships. Since numerous students apply to different prospective financiers, your document should stand out from the rest.

The fact that university education has become expensive cannot be overemphasized. With dwindling fortunes, many students need another source of funding than their employment, parents, and guardians.

The statement is a brief document, usually a few paragraphs long. It is addressed to universities, government agencies, and private organizations. Learn how to write an effective statement that will secure you financial aid.

Write a Brief, Strong Introduction

how to write a financial need statement

Treat this letter as you would treat a physical interview. Start with a strong first impression. As you introduce yourself, attract the attention of the readers with straightforward language. Explain the disadvantages that you come across daily.

Let the readers know who you are and why you are seeking financial support. This is the place to mention your shortcomings such as being a member of a disadvantaged group, refugee, ethnicity, physical disability, and illness among others.

Highlight how you have been struggling with paying school fees. Make them aware that you have exhausted all other avenues of finding financial help. If you are working to offset your school fees, mention this here.

Explain Challenges Clearly

how to write a financial need statement

As you are competing with other needy students, explain why you are the best candidate for help. According to Amherst College , the main purpose of a Statement of Financial Need is to win the admiration of readers. In details, explain the challenges that you have faced.

The loss of a parent or breadwinner is an ideal reason to seek financial need. Another reason may be your (or your guardian’s) loss of employment. Discuss any unanticipated expenses in your life or family. Specifically, detail any significant shortfalls in your family’s income.

Explain what your parents or guardians do for a living. If your other siblings are in school too, account for this fact clearly. Let the financier know the direct impact of your challenges to your education.

However, do not write falsehoods, as any lies will be discovered later and duly punished. It pays, to be honest and to show the panelists that you have tried to solve your challenges.

Describe how you will benefit from the financial support. While this sounds obvious, it is prudent for the funding authority to know the impact of their aid. To highlight this, consider sending copies of your degree certificate or transcripts later and a thank-you message.

Any financier would feel obliged to support a bright student. Therefore, let them know that you are a performer. You may attach copies of term transcripts as evidence of your claims. If you perform poorly, you could mention that your failure to pay school fees was the reason.

The following are important things to do when writing a Statement of Financial Need.

how to write a financial need statement

Exactly what is a Statement of Financial Need? Many students fail to secure scholarships and grants because of poor timing. To succeed, maintain an accurate calendar of various deadlines for application of scholarships.

Proper timing increases the chances of your application being read by the scholarships committee. Learn as many details as possible on the prospective financier. More importantly, read and understand the provisions of their financial support.

When you know the audience of your statement of financial need, you will address them appropriately. Ensure that your letter meets the demands or objectives stipulated by the scholarships committee.

Highlight Your Strengths

how to write a financial need statement

According to the University of Canberra , financiers are confident when sponsoring a gifted or active student. For this reason, describe your entire prowess in extracurricular activities after explaining academic strengths. A good example is a sports activity where you represented your school or college.

Also, mention your previous participation in community activities. These may include visits to child orphanages, assisting senior citizens and other actions of social responsibility.

Avoid sounding desperate. While you should use polite language, do not sound as though you are begging. Using emotional language may work against you. More importantly, show optimism and confidence that you will overcome your inadequacies.

Remember that a scholarship or grant is a privilege, and not a right. Therefore, use a polite yet professional tone. Do not mock other applicants or your audience. Instead, express respect for competitors and admiration for top performing students in your university.

Let the readers know specific benefits of the expected funding. For example, tell them that the financial support will give you peace of mind and that you will concentrate better in class.

Also, let them know that you will spend less time working. This, in turn, keeps you focused on academics.

Attach Supporting Documents

how to write a financial need statement

Increase the credibility of the claims in your Statement of Financial Need . Attach your resume, academic transcripts, certificates of participation and any other documents that you deem necessary.

Attach whatever reasonable papers to compel the potential financier to support you.

Ask people who know you well to write letters of recommendation. These may be your lecturers, supervisors at work and faith leaders among others. Do not procrastinate on this request. Instead, contact them early so that they have ample time to describe you best.

Do not overwhelm your audience with too much information. Remember that they have hundreds or even thousands of applications to read and shortlist. Therefore, be as concise and as straightforward as possible.

Before submitting the statement, ensure that its supporting documents are updated. This means that the application needs meticulous preparation. Read as many resources as possible on what is a Statement of Financial Need.

Find inspiration from Statements of Financial Need written by successful applicants in the past. The fact that your previous application was declined should not discourage you from writing another.

how to write a financial need statement

Throughout the letter, use simple yet kind vocabulary. A short and polite letter makes more impact than a lengthy or repetitive one. A real conclusion makes the reader understand your needs and patience to receive the desired aid.

Do not be in a hurry to write and submit, as you may fail to include important details. Proofread the letter severally. Detect and correct all grammatical errors. Let a friend proofread it as well and consider his or her opinion.

Just before sending it, use the following checklist-

Lastly, submit the Statement of Financial Need on time. Send the letter via a suitable channel such as email, post office or hand delivery. After that, pay close attention to your email, physical mail box and telephone for feedback.​

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What is a Statement of Financial Need

College is an expensive endeavor, and the past few years have seen colleges increase tuition fees . As a result, millions of college students now find it necessary to write a statement of financial need. If you’re like many students, this simple document is one of the only ways to secure funding and increase tuition assistance, so it’s essential to get the wording and contents right.

A statement of financial need is a letter that explains your financial situation and tells admissions staff why you will benefit from monetary support. Many colleges and universities require you to submit a statement when you apply for scholarships.

Think of the statement like a cover letter — it adds a human element to your application and convinces reviewers to take a closer look. A job applicant has a lot riding on a cover letter, and the same is true for you. Your statement of financial need must be intelligent, concise, and compelling to help secure scholarships, grants, and other types of financial aid.

Make the Introduction Brief and Impactful

The most important part of your financial need letter is the introduction: the first sentence and the brief paragraph that follows. This paragraph should summarize your financial situation in a few sentences. The details about your financial situation will come later, but at the outset, it’s important to make sure you handle the introduction with care.

As you write the introduction, it’s helpful to list the factors that qualify you for financial aid. Everyone is different, so don’t worry about competing with other applications; focus on your situation. Some of the things to consider include family size, a single-income home, or your family’s financial standing.

“I am the oldest of five children. My dad died when I was 6; my mother has been supporting us on her own as a full-time nurse. I’ve been working weekends and summers since 9th grade to save for college.”

“I’m proud to be part of a hard-working, blue-collar family from Idaho. My parents came to the U.S. from Honduras before I was born, and my sister and I both work part-time to help with rent and other costs. I will be the first person in my family to attend college.”

“I am a single parent raising a five-year-old son. Since my high-school graduation, I have worked full-time as a house cleaner, saving every extra penny for college. Now that he is in kindergarten, I’m able to start taking classes with the goal of creating a better life for us both.” In some cases, unexpected situations can affect your ability to pay for college. A parent might lose a job, for example, or your family might need to contend with medical bills. Include this information in the introduction, especially if it affects your immediate financial status.

“I grew up in a middle-class home in Cleveland. My father is the primary breadwinner, but he’s been unable to find work since he was laid off six months ago. I didn’t qualify for loans because of his prior income, and my family will no longer be able to contribute to my tuition and housing costs.”

“My parents and I have been putting money aside for college since I was a child. Two years ago, my mother was diagnosed with cancer, and the hospital bills have been overwhelming; we had to use my savings to avoid losing our home in the midst of chemotherapy treatments.”

Don’t worry if you don’t have a memorable story — many families make too much money to qualify for loans but not enough to help their children pay for tuition. The most important thing is to be honest about your family’s situation.

Information to Include in the Body of a Statement of Financial Need

financial need letter

How You’re Paying for College Offer details on how you’re paying for college right now. For example, you may want to highlight your job, and how you’re making ends meet by working and going to college at the same time. Include your efforts to get student loans and any other additional funding you’ve managed to acquire.

In this part of the statement of financial need, the goal is to show that you’ve made an effort to save money for college. This demonstrates to reviewers that you take education seriously, and that you understand its value. It also reassures them that you’re fiscally aware and able to manage scholarship money responsibly.

This section can take many different forms. If you’ll be starting as a first-year student, you might explain how you’ve been working in the summer to save for college. If you’re already in college, you can talk about your work-study job or weekend work. Don’t forget to mention your parents’ savings accounts or expected contributions, if available.

“My parents both work full-time, but they earn just enough to make ends meet for our family of five. In 9th grade, I realized that I’d be responsible for paying for college. Since then, I’ve worked part-time as a cashier at a local grocery store, picking up babysitting jobs whenever I can. Over four years, I’ve saved a little more than $5,000 for my education.”

“Together, my parents and I have saved $6,000 per year for my education. I’ve been approved for up to $7,000 in loans.”

“Currently, I’m a sophomore in the kinesiology department. I have a 10-hour work-study job, and I wait tables on the weekends.”

Difficulties You’ve Faced Finding Funding for College For this part of the financial letter, list the reasons why you’re having trouble getting the necessary funds together. Perhaps your federally funded loans don’t cover full tuition, or you’ve had a change in family circumstances that led to your financial need.

As you write, it’s helpful to have your financial information nearby. That way, you can include specific details about how much assistance you need to cover the cost of attendance. There’s no need to be embarrassed about your situation; simply explain the challenges you’ve faced using a straightforward tone.

“In total, I have $4,000 in savings. My family is unable to contribute to my education, so even taking into consideration the $10,000 in federal grants and loans I’ve received, I need to come up with $3,000 to cover this year’s tuition and housing expenses.”

“My parents expected to contribute $5,000 per year toward my tuition. Since my father lost his job, they’ve been forced to reduce that amount to $1,000 per year.”

“Throughout college, I’ve been working 25 hours a week as a science program aide at a local elementary school. The program lost its funding recently, leaving me without a primary source of income.”

How You Benefit from Financial Aid In three to five sentences, showcase why you’re deserving of the financial aid and how it will help you reach your educational goals. Include a sentence or two about your future after college and how you’ll benefit from being able to cover tuition with assistance.

This part of the statement of financial need is a great place to explain why you’re a great investment. It should convince the reviewer that you will put the money to good use, both during college and after. You might discuss your stellar academic record, for example, or talk about how your career goals will benefit a specific community.

“My family depends on my contributions, so I’ll be living at home while I attend college. This scholarship will enable me to cover tuition costs, so I can focus on my engineering courses during the week and use weekend income to help out with rent. With assistance, I’ll be able to maintain my strong academic track record and become a first-generation college graduate. After graduation, I intend to become a professional engineer and ease the burden for my hard-working parents.”

“During my first two years as a nursing student, I’ve worked 20 hours per week and maintained a 3.8 GPA. I’ll be starting clinical rotations and core classes this coming semester, and I know they’ll demand more time and energy. A $5,000 scholarship will allow me to focus on my studies and achieve my goal of providing exceptional healthcare to underserved communities.”

“After working hard to earn a 4.0 GPA in high school, I was one of just three women accepted into the top computer science program in the country. With your support, I can cover tuition costs and devote my energy to this challenging field. After graduation, I plan to pay it forward by mentoring other young women and increasing diversity in STEM careers.”

Other Beneficial Information to Include

statement of financial need letter

Once you have the basic details in your statement of financial need, you may want to include some extra information. Choose details that enhance your application and make you a more desirable candidate. Some examples are:

Compelling personal story Examples of your fiscal responsibility Challenges you’ve already overcome Past academic success Projects that demonstrate dedication to your field of study

Once you have a story in mind, try to relate it to your future academic career. You can work in these details wherever it makes sense.

“At 15, I survived a near-fatal car accident. While going through intense physical therapy to relearn how to walk, I maintained my position on the dean’s list and became the president of the National Honor Society. I’m approaching my Physiology degree with that same drive and dedication.”

“I learned HTML in a high-school summer program, and started a side hustle building websites for local businesses. In three years, I saved $10,000 for college.”

When you’re applying for a scholarship or grant that’s aimed at a specific group of people, try to pick information that’s relevant to the application. In the statement of personal need for a “Diversity in Computer Science” scholarship, you might talk about how you started a free summer coding workshop for kids from low-income families. If you’re applying for merit-based scholarships, discuss your unbroken track record of straight-A report cards, AP classes, and extracurricular leadership.

As a rule of thumb, your letter should fit on one page — you don’t want to hand over a letter of financial need that requires extra pages and staples. If you can’t fit the extra details on a single page and you believe the extra information would help your case, edit out less-compelling sentences to make room.

Polite and Concise Conclusion

financial need

When you’re short on space, the conclusion can be as simple as, “Thank you for considering my application; I appreciate your time and this valuable opportunity.”

If your letter is on the shorter side, the conclusion is a great place to work in a compelling detail. For example:

“With this scholarship, I’ll be able to spend the summer on an undergraduate research project instead of working to pay tuition. Thank you for taking the time to consider my application.”

“This scholarship would help me cover the cost of books and housing, so I can go to school and provide a safe home for my son. I appreciate your consideration.”

If you are unable to cover the cost of college, you’re not alone — there aren’t many students who can attend college without applying for scholarships and financial aid. The number of kids who can afford college without help today is dwindling fast, which means that you’ll have competition for the important scholarships and aid packages.

Great scholarship applications can help you stand out from the crowd and secure the funding you need. Your statement of financial need is an important part of those applications; make sure it rises to the top by including details that are meaningful yet concise. With a strong, compelling letter, you can find funding and start your college career off on a solid financial footing.

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WHAT IS A STATEMENT OF FINANCIAL NEED?

BestValueSchools.com Staff

Contributing Writer

Learn about our editorial process .

Updated December 5, 2022 · 1 Min Read

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Higher education is expensive, and many financial resources require a Statement of Financial Need when identifying applicants for scholarships and aid. Of course, as pointed out by a student on the forum " answers.yahoo.com ," you can enclose the estimated financial contribution from the FAFSA application, but most scholarships and grants require personal statements as well. Requirements vary by scholarship and school, so how do you write a financial needs statement?

What Exactly is a Statement of Financial Need?

It is a short letter, usually about two or three paragraphs, that explains why you would benefit from being awarded a scholarship. This is not a debit-and-credit sheet such as the FAFSA application requires. The Statement of Financial Need should be concise and compelling.

Start With a Brief Introduction

First, list any special scholarship need groups to which you may belong. Are you the first in your family to go to college? This is the place to explain that. Are you from a disadvantaged family? Are you from an ethnic group that is under-represented at the school? In this introductory paragraph, you give the financial aid committee a picture of who you are.

Explain How You are Paying for College Now

Let them know you are not ignoring other sources of help. Tell the committee if you are working to help pay college expenses. Detail what steps you have already taken to pay for your education, such as  529 Savings Plan . This gives the scholarship committee a starting point from which to understand your financial situation.

Explain Difficulties You Are Having in Meeting Your Needs

A Statement of Financial Need should tell the committee why you are seeking aid. This is the place to talk about any changes that have occurred in your life that impact your ability to pay for your education. For instance, there may have been changes in your family's income, unanticipated expenses or a shortfall in your finances. In this area, you can also provide information to show that you handle funds responsibly. For instance, have you already paid for a semester, or a year, by your own efforts? If you broach this issue, though, include only information about education, and not about unrelated things like car loans.

Talk About How You Would Benefit From the Scholarship

This may seem obvious, but it is important for the committee to understand that you intend to make good use of the funding. According to the financial aid page at " umass.edu," rel="nofollow"  this might include benefits like being able to concentrate on your studies by not spending so much time working. The funds might also allow you to take an unpaid internship required by your degree. In fact, the scholarship may make the difference between dropping out and finishing your studies. If that is the case, let the committee know.

Close In a Brief and Respectful Tone.

Do not beg. Avoid emotionalism. Let your tone be professional and polite.

Scholarships and financial aid are privileges, not inherent rights; the opportunities that these funds give students are invaluable. Schools and funding sources have a great responsibility in deciding to whom the awards should go. A Statement of Financial Need is one tool they use, and it is up to the student to make it as "sharp" as possible.

Related:  Merit Based or Financial Need - Which Scholarship is Easier to Obtain?

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how to write a financial need statement

Scholarship Essays

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Describe Your Financial Need for this Scholarship Essay Sample

Briefly describe your financial need for this scholarship.

I am in need of financial assistance in order to attend college because I am a low-income student. I am the 1st child to attend the college. Although my parents gave me many supports, I received a limited financial assistance due to low family income. To reduce family burden, I took out student loans to pay for my tuitions. Meanwhile, I am working 19 hours per week on campus to support myself. However, with the increasing tuitions this year, I am facing more challenges on financial need. As a senior in Petroleum Engineering, I wish to spend more time on my major courses because these courses are cores of my major and crucial in my future career. Unfortunately, financial burden may lessen my time on mastering the courses. Therefore, I would greatly appreciate a helping hand so that I can successfully obtain my engineering degree.

Awarding this scholarship will make great contribution to my study in Louisiana State University. This scholarship would allow me to work less and focus more on my studies. Meanwhile, this scholarship will support me to do more on community service and explore my potential in assisting the needs of people. Furthermore, receiving this scholarship will give me more opportunities to attend the conference and expose to newly developed technology. Additionally, awarding this scholarship would further motivate me to pursue academic excellence

Original Source: Essay Forum

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Financial Needs Statement

Writing a financial needs statement.

Many scholarships and college financial aid awards are “need-based,” including many of the scholarships awarded by the Woodland Hills Foundation.

Many of the donors who provide funding for our scholarships have stipulated that their scholarships be awarded specifically to students with a financial hardship or need. In fact, you may be applying for other scholarships, outside of the Woodland Hills Foundation that also require a needs statement. By writing your needs statement for the Woodland Hills Foundation now, you will be providing yourself with a good starting point for other scholarships to which you apply.

What Should Your Financial Needs Statement Include?

If you are an underrepresented group at college, for instance, part of an ethnic minority or the first in your family to go to college  

Any relevant family circumstances, like if your parents are immigrants or refugees, as well as your parents’ occupation and how many children/family members they support financially  

How you are currently paying for college, including what you personally are doing to contribute financially (like working student jobs)  

What financial challenges/difficulties your family is facing, for instance, if a parent recently lost their job  

How you would benefit from the scholarship–including your academic and career goals

KEEP IN MIND: THE TONE OF YOUR ESSAY

Remember to write in an optimistic tone. Writing about your financial situation or hardships might not be the most positive thing to share, but you can turn it around with an optimistic tone by writing about how these challenges have taught you resilience and adaptability.

Avoid being overly emotional. Let your tone be professional and polite. The Foundation and our funders have a great responsibility in deciding to whom the scholarships should be awarded. A Statement of Financial Need is one tool we use, and it is up to the student to make it as polished and professional as possible.

Template to Structure your Financial Needs Statement:

Writing your Essay is easier than you might think.  Just follow this basic structure to tell your own story and you’re all set!  

Who you are (are your parents immigrants; do you come from a single-parent home; do your parents work hard to make ends meet; does your family expect you to pay for your post-secondary education on your own?)  

Your Financial Situation and Hardships

Your parent/guardian’s occupations

Any savings accounts you might have

Have you held a job? Are you saving money to continue your education?

Any sudden changes in fortune? Has someone in your family become ill or lost their job?

Any other obstacles to continuing your education  

Conclusion: How Would You Benefit from a Scholarship?

How will you use the funds?

Where do you plan on continuing your education? (School name)

What do you plan on studying?

Why/How this scholarship will help (will this scholarship help you go to a school you couldn’t otherwise afford? Will the scholarship help you focus on your studies instead of worrying about a job?

EXAMPLES FOR WRITING YOUR FINANCIAL NEEDS STATEMENT:  

1.  Introduction: Your Basic Biography

Give a short introduction to who you are, highlighting any family characteristics that might make you part of an underrepresented group at college. 

“I am a first-generation American and the first in my family to go to college. My family moved from El Salvador to Pittsburgh when I was seven years old, to escape the violence there.”

Example 2: 

“I am from a working-class family. We never had a lot, but we pooled our efforts together to make ends meet. My parents both worked full-time (my father as a mechanic, my mother as a receptionist at the local gym), while my siblings and I all worked weekend jobs to contribute to the family income.”

2.  Body: Your financial situation and hardships

Dive into the details. How are you currently planning to pay for college? The idea here is to show that you and your family have made a good-faith effort to earn enough money to pay your tuition, but that it has simply not been enough. Make sure you describe your parents’ occupation, any savings (like a 529 College Savings Account), and any student jobs. You might also discuss any sudden changes in fortune (e.g. parent fell ill or lost their job) that have ruined your original financial plans. 

“As immigrants with limited English, my parents have had to accept low-paying jobs. My father is an Uber driver, and my mother is a housekeeper. They earn just enough to pay our rent and put food on the table, so I’ve always known they could not help me pay for college.  So, I’ve been proactive about earning and saving my own money. Since age 11, I’ve worked odd jobs (like mowing my neighbors’ lawns). At age 16, I started working at the mall after school and on weekends. Through all these jobs, I’ve saved about $3000. But even with my financial aid grants, I need to pay $8000 more per year to go to college. 

“For as long as I can remember, it’s just been my dad, my brother and me.  My dad has always worked hard to give us a nice life but there’s also been a lot of times we have had to go without. Two years ago, my dad got hurt at work and hasn’t been able to go back.  My brother and I both got jobs as soon as we were old enough so that we could help buy groceries or pay the rent when dad needed help. He always talked about the importance of education, but I will need to find a way to get Financial Aid, student loans and scholarships to help me pay for school.”

3.  Conclusion: How you would benefit from this scholarship

Bring it home by wrapping up your story.  Explain how you plan to use the financial aid if you’re awarded this scholarship. How will you benefit from this award? What will you put the money toward, and how will it help you achieve your  academic  and/or  career  goals?

Our funders need to know that their money will be put to good use, supporting a student who has clear plans for the future, and the motivation and determination to make those plans a reality. Be as clear as you can about your plans.

“A scholarship would help me close the financial gap and take less in student loans. This is particularly important for me because I plan to study social work and eventually work in a role to support my community. However, since these jobs are not well paid, repaying significant student loans would be difficult. Your scholarship would allow me to continue down this path, to eventually support my community, without incurring debt I can’t afford.”

“My plan is to study human biology at the University of Pittsburgh, where I have been admitted, and eventually pursue a career as a Nurse-Practitioner. I know that being pre-med will be a real academic challenge, and this scholarship would help me focus on those tough classes, rather than worrying about how to pay for them. The $2000 award would be equivalent to about 150 hours of working at a student job. That’s 150 hours I can instead focus on studying, graduating, and achieving my goals.”

If you have questions or need additional help, please contact Jennifer Trehar

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