How to Write a Statement of Financial Need

By Gabriel Jimenez-Ekman

Gabriel Jimenez-Ekman is a content editor and writer at Scholarships360. He has managed communications and written content for a diverse array of organizations, including a farmer’s market, a concert venue, a student farm, an environmental NGO, and a PR agency. Gabriel graduated from Kenyon College with a degree in sociology.

Cece Gilmore is a Content Writer at Scholarships360. Cece earned her undergraduate degree in Journalism and Mass Communications from Arizona State University. While at ASU, she was the education editor as well as a published staff reporter at Downtown Devil. Cece was also the co-host of her own radio show on Blaze Radio ASU.

Caitlyn Cole is a college access professional with a decade of experience in non-profit program and project management for college readiness and access organizations.

Maria Geiger is Director of Content at Scholarships360. She is a former online educational technology instructor and adjunct writing instructor. In addition to education reform, Maria’s interests include viewpoint diversity, blended/flipped learning, digital communication, and integrating media/web tools into the curriculum to better facilitate student engagement. Maria earned both a B.A. and an M.A. in English Literature from Monmouth University, an M. Ed. in Education from Monmouth University, and a Virtual Online Teaching Certificate (VOLT) from the University of Pennsylvania.

Many students want to know how to write a statement of financial need since it can be a challenging and daunting task. 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.

What is a Statement of Financial Need?

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.

In this article, we will provide a step-by-step guide to show you how to write a statement of financial need.

Apply to these exclusive scholarships

$10,000 “No Essay” Scholarship

“College Here I Come” Essay Scholarship for High School Seniors

“Broad Horizons” Scholarship for High School Juniors

“Making Waves” Scholarship for Women

“Tuition Solution” Scholarship for STEM Students

“A Helping Hand” Scholarship

What to include in your statement

• A quick rundown of your family’s employment situation. This includes who in the family is working, what type of job they hold, and if you are working to help support your education or to help support your family
• Whether you are a first-generation college student
• If you or your parents are immigrants or refugees
• Whether you or your parents speak English as a second language, or do not speak English at all
• If you were raised by a single parent, or in a foster home
• Any extenuating circumstances that could be affecting your family’s finances, such as medical issues or job loss. Any recent shortfall in your family’s financial situation is worth mentioning
• If you are a member of any minority group (for many colleges, recruiting underrepresented students is an institutional priority as they seek to create a diverse community).
• Opportunities that you would be able to accept if the scholarship helped meet your financial need. An example would be if you are pursuing an unpaid or low-paying internship over the summer, but needed to earn money to help pay for next semester’s tuition

What to avoid in your statement

• Try to avoid a negative or dramatic tone. Even if your financial situation is stressful, try not to communicate that stress in your statement. It’s best to let the facts speak for themselves
• Avoid comparing your situation with the situations of others. Remember, this essay is about you, and why someone in your situation could benefit from the scholarship
• Avoid focusing too much on tangential details. Try to only include the details that are immediately relevant to your ability to further your education. For example, if your family has experienced a financial shortfall because your father lost his job, you don’t need to go into details of your father’s business or his chance of being re-hired. You need only to mention that it has led to your family receiving less than their projected income for the year, and that this impacts your ability to pay for college

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
• Format your essay with body paragraphs
• Finish with a strong conclusion

Let’s get started with the first step…

Create an outline

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.

Write your introduction

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.

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.

Finish with a strong conclusion

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.

Key Takeaways

• A Statement of Financial Need can be beneficial for students who know they may not be able to afford college
• Always try to be positive when writing your Statement of Financial Need
• Structure your statement in an easy to read, concise way