Would there be any difference in meaning if you interchange these sentences.
The scholarship is awarded based on demonstrated financial need.
The scholarship is awarded based on financial need demonstrated by the applicant/etc.
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There would be a difference in meaning.
The first sentence means that basis for awarding scholarship is the financial need demonstrated by an unknown organization, which we will never know without other context clues.
The second sentence gives detail as to by whom the financial need was informed and posed, which were the applicants.
To summarize, the only difference was that the second sentence provided the information concerning the provider of the information regarding the financial need. Hope it helps.
The only difference is that the second sentence contains an additional subclause which defines "demonstrated". If you put it into the first sentence:
The scholarship is awarded based on the demonstrated by the applicant financial need.
then there shall be virtually no difference.
Oh, and I added "the" in front of "demonstrated", seemed wanted.
In sentence number one, it only implies that the financial need is demonstrated by the applicant, sentence number two on the other hand, specifically states that the financial need is demonstrated by the applicant.
Is the "etc" part of the second sentence? Or you just added it there meaning you will list there more options? If it is part of the sentence, both sentences mean the same, although he first one says it in a nicer way.
If the "etc" is not really part of the sentence, then there is a difference in meaning. The first sentence says that the financial need has to be demonstrated, however it doesn't specify by whom. In the second sentence you specify the applicant(or the list you want to add) needs to demonstrate it.
If you read the answers here, you will notice that different people interpreted the first sentence in different ways. Some said that it implies that the applicant needs to demonstrate the financial need, others that an organization is the one that has to do it. However those are only interpretations, the sentence itself doesn't specify either one.
If it is really important to make clear that the applicant is the one that has to demonstrate the financial need, then, use the second sentence. Otherwise use the first one, because it is shorter/cleaner and leaves the door open for more possibilities. You won't need to list all of them in the "etc" section you had.