If you are yet to apply for student loan and in case you are still interested, follow this guide on How to apply for Federal Student Loan 2024 on NELFUND.
I would like to start by telling you a short story of a certain Nigerian student called Glory.
Glory is a bookworm! An avid reader.
I would like to start by telling you a short story of a certain Nigerian student called Glory.
Glory is a bookworm! An avid reader.
Her fingers traced the worn spines, each one an important path to knowledge, but also a potential drain on her declining budget. She had mastered student life knowing the difficult balance between reading textbooks and drinking garri but even she was feeling the pressure of the economy.
This month, the rent was due, her laptop needed a new charger, she was lacking foodstuffs, and her part-time job was threatening to cut her off which meant there wouldn’t be money to support her expenses.
The need to manage must be provided or known because of the act of mismanagement and because there is a tendency for you to mismanage your funds.
You would later feel guilty when you see your peers managing their funds well and still have enough to support them through the dry, days and you are just stuck at a place with debts.
NELFUND loan terms & conditions
This month, the rent was due, her laptop needed a new charger, she was lacking foodstuffs, and her part-time job was threatening to cut her off which meant there wouldn’t be money to support her expenses.
Most especially her examination starts in a couple of days.
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With everything that she is currently going through, she sat down and re-examined the way she has been spending her money because she couldn’t understand how she spends her money even when she was still collecting her monthly NELFUND upkeep payment from the government and her part-time salary every month was still not enough and she didn’t even know what to do.
With everything that she is currently going through, she sat down and re-examined the way she has been spending her money because she couldn’t understand how she spends her money even when she was still collecting her monthly NELFUND upkeep payment from the government and her part-time salary every month was still not enough and she didn’t even know what to do.
But she noticed that she needed to shift her mindset, from scarcity to abundance.
She noticed that she spends money on things that she doesn’t need like buying a phone holder that she isn’t using, or buying food at the cafeteria which costs her a fortune.
Are you like Glory who doesn’t know how to maximize NELFUNDS' monthly upkeep payment as a student?
You don’t know how to spend your monthly stipends?You feel like you spend money lavishly even when you feel the things you spend money on are important in that minute. Even after months and weeks, you will notice that you have spent the money on things that are not important.
Do not worry. I'm here to guide you step-by-step on how to start maximizing your NELFUNDS monthly upkeep payment as a student.
Do not worry. I'm here to guide you step-by-step on how to start maximizing your NELFUNDS monthly upkeep payment as a student.
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How do you manage funds as a student?
To manage according to Merriam-Webster, is summarized as the essence of taking responsibility, making decisions, and striving to achieve desired income. It is a concept that can be applied to many aspects of life ranging from personal finances to large-scale organization.The need to manage must be provided or known because of the act of mismanagement and because there is a tendency for you to mismanage your funds.
You would later feel guilty when you see your peers managing their funds well and still have enough to support them through the dry, days and you are just stuck at a place with debts.
As a student, you can manage your funds by tracking your expenses, creating budgets, learning and getting knowledge on financial literacy, seeking grants and scholarships, etc.
Do students really mismanage funds?
It is believed that as a student you have access to many sources of income, hence the saying ‘students are rich’.But this belief isn’t true because as a student there are several impromptu spending and expenses that must be done within a particular time and when it is not done can attract some heavy consequences, especially for those that don’t have anything to do (side hustles) and are always expecting monthly stipends from NELFUND.
Some students indeed struggle with managing their finances but it’s not really about mismanagement as we all think it is. Sometimes it’s about not knowing how to cope with new and challenging situations that can just occur without prior knowledge.
Some students indeed struggle with managing their finances but it’s not really about mismanagement as we all think it is. Sometimes it’s about not knowing how to cope with new and challenging situations that can just occur without prior knowledge.
Some of the factors that can make a student think he/she has mismanaged his/her finances are:
- Financial Experience Limited: Many students are entering the world of managing their own money so it would be a new experience if they don’t have experience and knowledge of financial management. They would know how to track their expenses, to budget effectively to make good financial decisions.
- Limited Source of income: Students have limited income for financial aid which can be from support from parents, part-time jobs, etc and this can lead to a student overspending and make it difficult to cover their expenses making them rely on credit.
- Social Pressure: Peer pressure and the desire to fit in can lead to impulsive spending on entertainment, social activities, or fashion.
- Some other factors might include; unexpected expenses, lack of financial literacy, short-term focus, etc.
Seven effective maximize NELFUNDS monthly upkeep payment as a student?
#1. Understanding the loan terms
To know how the Nigerian Education Loan Funds can be managed, as a student you must know the pros and the cons of the loan objective to know if it’s something you can cope with or not.
This basic understanding would help you as a student to know the terms and conditions that are attached to the loan. It would also help with knowing the repayment schedule, interest rates, and any important penalties for late payment. As it is being said "Information is CURRENCY" (Video guide).
#2. Creating a Budget
A budget can be defined or seen as a list of things that want to be bought. There should be a need to create a well-detailed budget plan that can account for all your essential expenses like rent, feeding, utilities, etc., and any necessary educational costs like books, handouts, and the rest.
When this is done, it would enable you to track your spending expenses and know where to cut off unnecessary spending.
#3. Prioritizing Need over Want
After creating your budget that has your expenses, you must learn how to decide or differentiate your needs and your wants.A NEED is something very important and essential you cannot do without and it is important for survival and well-being BUT a WANT is something desirable but necessarily important.
You must concentrate on spending your money on things that are absolutely important to your education and your well-being as a student.
#4. Look for other sources of income
Students who collect these loans must look for alternate sources of income.
So looking for a part-time job on campus, in your community or an online job that fits your schedule and skills that can supplement your income and be able to help repay the loan when it is time.
#5. Financial literacy
As a student, you must develop the literary skills that can help and give knowledge on how to manage finances. This is important because when you have this skill it would help to know how to spend wisely and know how to effectively manage the loans that you receive.
This is because when this is lacking it would make it difficult for you to understand terms like interest rate, credit scores, or budgeting.
#6. Avoid debts
While taking the NELFUNDS monthly upkeep payment, you must not take or collect more loans and make or have more debts no matter how small the interest rates so that you are not flooded with debts that wouldn’t be easy to pay back.
When there are too many debts, sometimes it can be overwhelming and can make it difficult to concentrate on your academics because you owe a whole lot of people.
#7. Build an emergency fund
As a student, you must have a backup emergency fund that you must be saving for when there are situations that are uncalled for.
All seeds are not meant to be eaten. You need to sow some.
You must learn how to save for some situations that might just occur so that you won’t be stranded and be caught up with life.
FAQs on NELFUND Student loan by the Federal Government
How does NELFUNDS work?
This is a loan that would cover the cost of institutional charges and the upkeep of the student if required. The way it works is that the institutional charge would be remitted directly to the applicant’s institution and the upkeep will be paid to the applicant on a monthly installment basis.Has NELFUNDS started disbursement?
Yes, NELFUNDS has started the disbursement of funds as the academic sessions of universities have begun. Some government-ru institutions have been approved for the disbursement of NELFUNDS.What is the minimum payment for student loans?
The Nigerian Education Loan Fund [NELFUNDS] is currently disbursing N20,000 to each student in a government-run institution as monthly stipends.Final Thought on How to maximize NELFUNDS monthly upkeep payment as a student
Remember that the way you spend money presently will determine how you can manage your resources in the future. And you must learn it now than later.
The ways mentioned above can be a guide that helps you to learn how to effectively manage both now and in the future.
Glory had to reexamine her life which was what helped her to be able to live and spend effectively so let her be a guide to help you and reflecting on her actions wouldn’t be a bad idea.
So remember to always spend wisely.
Glory had to reexamine her life which was what helped her to be able to live and spend effectively so let her be a guide to help you and reflecting on her actions wouldn’t be a bad idea.
So remember to always spend wisely.
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