How to maximize NELFUNDS monthly upkeep as a student in 2025

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You don’t know how to spend your monthly stipends? 

Do 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 maximizing your NELFUND monthly upkeep payment as a student henceforth.

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 organizations.

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, it 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 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 and 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 making 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.

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Seven effective ways to maximize NELFUND monthly upkeep payment as a student

To know how the Nigerian Education Loan Funds can be managed, as a student, you must know the pros and 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 NELFUND 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. 

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 would 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-run institutions have been approved for the disbursement of NELFUNDS.

What is the minimum payment for student loans?

The Nigerian Education Loan Fund [NELFUND] 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 rather than later. 

The ways mentioned above can be a guide that helps you learn how to effectively manage both now and in the future.