Should You Apply For Scholarships That Consider "Financial Need?"

One of the largest scholarship mistakes that I see families make is to assume that they don't qualify for scholarships that include "financial need" as part of the selection process. This is understandable, but let's unpack what "financial need" really means to determine if your student should pursue any scholarships that include "financial need" in their judging decisions. To do this, we will look at some specific scholarships and how they define, or don't define, "financial need."

Specifically Defined Income Limits

Some scholarships have a specific annual household income limit to be eligible for the award. The Hagan Scholarship is one example. Among its eligibility requirements, they state, "Applicant’s Adjusted Gross Household Income reported for 2024 Federal Income Tax Purposes must not have exceeded $100,000. “Household Income” is defined as the total income received by all adult members of a household living under the same roof." So, the Hagan Scholarship and others that define a specific income cap make the decision to apply or not very straightforward. In this case, if your family income is above $100,000, this one is not for you. If your income is below that amount, then as long as your student meets the other eligibility requirements, this is likely one to add to your scholarship list to apply for.

Non-Defined "Need"

Other scholarships are much more vague about how they define "financial need." For example, the Elks Most Valuable Student Scholarship clearly states that "financial need" is part of their criteria for awarding this scholarship. Yet, in the FAQ, it states, "There is not a minimum income required in order to apply, nor is there a maximum income we would not consider." So, here we have a scholarship that says that "financial need" is one consideration, yet there is no maximum income they won't consider.

The Burger King Foundation Scholarship is another example of a scholarship that considers "financial need" in its decisions, making up 33% of its judging criteria, but doesn't define that term. Yet, every year, Scholarship GPS students from middle-class and upper-income families win prizes from this scholarship. Former Scholarship GPS students who have received this scholarship include one whose parent was a dentist, another whose parents were doctors, another whose parents were a speech therapist and a corporate director of marketing, and yet another whose parents were well-known political consultants. None of these families would be considered "financially needy" by most people.

To Apply or Not Apply?

When deciding whether to apply for scholarships that include "financial need" as part of their selection criteria, first check if the scholarship defines what "need" means, including a specific income cap. If they do and your family exceeds that cap, skip the scholarship. However, if "financial need" isn't clearly defined, should you still apply? It depends. Here are some other factors that might help you decide.

• Does the scholarship offer more than one prize? If so, that increases your odds of winning. The Burger King Scholarship only accepts 50,000 applications, yet in 2025, they awarded over 4200 prizes. That works out to roughly a one in twelve chance of earning a prize! Those are very good odds. Every year, at least one Scholarship GPS student has earned a prize from the Burger King Scholarship.

• Is there a local component to the decision process, or are there local prizes? The Elks Most Valuable Student Scholarship is a national scholarship, but "Applications must advance through local, district, and state levels to reach the national competition." Some of those local, district, and state-level Elks organizations may award their own prizes using this national application.

• If your student decides not to apply for the scholarship because it has a "financial need" component, then what scholarship will take its place as the next one to work on? If there isn't another scholarship to work on, then at least give the "financial need" scholarship a try.

Don't eliminate yourself from the scholarship competition. Let the scholarship itself do that, either with a specific, defined criterion that your student doesn't meet, or by choosing someone else as their recipient.

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