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Nearly 12% of Nevada's student loan holders in default as federal collection efforts restart

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Nearly 12% of Nevada's student loan holders in default as federal collection efforts restart


LAS VEGAS (KTNV) — Nearly 5 million people across the country have not made payments on their student loans for nearly a year (360 days), according to the U.S. Department of Education.

But starting May 5, the department will begin collecting money from those who have defaulted, the department announced last Monday.

WATCH | What the federal collection efforts will mean for Nevadans

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Nearly 12% of Nevada’s student loan holders in default as federal collection efforts restart

The mandatory collections come after a five-year pause sparked by the COVID-19 pandemic.

Bethel Kifle, a second-year mechanical engineering student at UNLV, has only taken out one student loan so far.

“I was taking summer classes and since I couldn’t use the fall scholarship yet, I just took out a loan, so I don’t have to use my personal money cause again, I need it for — to pay other stuff like bills and stuff. The loan helped me get through that summer without being zero dollars in my banking account,” Kifle said.

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Even though she won’t be required to pay the loan back until after graduation, Kifle already has a plan in place.

“The big scholarship I had, I ended up getting like $9,000 refund, so I saved that money just so I can use to pay back the loan that I took out,” Kifle said.

But not everyone is as prepared. According to the U.S. Department of Education, 42.7 million borrowers have more than $1.6 trillion in student debt.

Roughly $12.4 billion of that money is owed by Nevada borrowers, according to the Education Data Initiative. Nearly 12% of them are in default.

“If you take out a loan, you have to pay it back, it’s very simple,” said Karoline Leavitt, White House press secretary.

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While no loans have been sent to collections since 2020, Trump administration officials announced that will no longer be the case. They say people who don’t make a repayment plan by the May 5 deadline could face involuntary collections.

WATCH | Student loans in default to be referred to debt collection, Education Department says

Student loans in default to be referred to debt collection, Education Department says

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“The government can and will collect defaulted federal student loans debt by withholding money from borrowers, tax refunds, federal pensions and even their wages,” Leavitt said.

Kifle’s recommendation for her fellow students is to keep applying for scholarships.

“Every semester, I’m still applying to scholarships. Loans should be the very last resort,” Kifle said.

All borrowers in default will receive email communications from Federal Student Aid (FSA) over the next two weeks making them aware of these developments and urging them to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.

Detailed information to help borrowers get out of default is also available at StudentAid.gov/end-default.    

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This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.





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Lee: Trump ‘cruel’ for ending SNAP funding, Nevada ‘complicit’ for not doing more

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Lee: Trump ‘cruel’ for ending SNAP funding, Nevada ‘complicit’ for not doing more


Democratic U.S. Rep. Susie Lee on Tuesday criticized Republican Gov. Joe Lombardo for not doing more to provide substitute benefits to the hundreds of thousands of Nevadans who are supposed to receive Supplemental Nutrition Assistance Program benefits next month but who won’t because of the government shutdown. Lee first called it “cruel” of the Trump […]



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Nevada attorney general joins multi-state lawsuit over SNAP benefit cuts during government shutdown

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Nevada attorney general joins multi-state lawsuit over SNAP benefit cuts during government shutdown


LAS VEGAS (KTNV) — Nevada Attorney General Aaron Ford announced Tuesday he is joining a multi-state lawsuit against the Trump administration over cuts to federal food assistance benefits amid the ongoing government shutdown.

As the shutdown enters its fourth week, approximately 500,000 Nevadans who rely on the Supplemental Nutrition Assistance Program, or SNAP, face uncertainty about their November benefits. Our state typically receives around $90 million per month in federal SNAP funding.

WATCH | Anyssa Bohanan breaks down some of the ways the shutdown is affecting Southern Nevadans

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Nevada SNAP to go without funding as government shutdown stretches on

The U.S. Department of Agriculture says on their website that SNAP benefits will not be distributed starting Nov. 1, stating “the well has run dry” and pointing to Senate Democrats as the reason for the shutdown. Nationally, SNAP helps approximately 42 million Americans.

WATCH | Scripps News speaks with USDA Secretary Brooke Rollins about the ongoing shutdown, impact to SNAP benefits

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Agriculture secretary says emergency fund isn’t enough to cover SNAP benefits

However, attorneys general from 23 states and the District of Columbia argue the USDA is making a “deliberate” decision to withhold contingency funds that exist for exactly this scenario.

RELATED STORY | DoorDash, restaurants offer free help as SNAP funding lapses during shutdown

“The Trump Administration’s choice to cut SNAP benefits is not only a deliberate, cruel and extraordinarily harmful decision, it is unlawful. And the reason it cites — the ongoing federal government shutdown — is inadequate,” Ford said in a news release.

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In an agency memo obtained by Scripps News, the USDA says they are saving more than $5 billion in contingency funds for more immediate emergencies like “hurricanes, tornadoes, and floods, that can come on quickly and without notice.” Further, the agency says the appropriations for regular monthly benefits do not exist anymore due to the shutdown, and they will not reimburse states who try providing benefits themselves.

“Contingency funds exist for this exact scenario, yet the USDA has decided to abdicate its responsibility to Nevadans and refused to fund SNAP benefits. I understand the stress of not knowing where your next meal is coming from, because I’ve lived it. I don’t wish that stress on any Nevadan, and I’ll fight to be sure nobody in our state goes hungry. I urge Governor Lombardo to do the same and to work with his party and President Trump to ensure that Nevadans receive their SNAP benefits,” Ford continued.

Gov. Joe Lombardo has urged the federal government to end their standstill, citing its harmful effects on Nevada in letters sent our federal delegation, specifically over SNAP.

In the 51-page lawsuit, attorneys general claim the lapse in SNAP benefits would bring more harm beyond just those who rely on the program, but also local governments, school systems and food pantries as their supplies can’t meet the spike in demand.

WATCH | Steve Sebelius speaks with local food pantry over the SNAP benefit crisis

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Members of Congress, Governor Trade Letters Over SNAP amid Shutdown

Ford joins attorneys general from Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington and Wisconsin in the lawsuit. The governors of Kansas, Kentucky and Pennsylvania have also joined the suit.





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Nevada-grown tree begins journey to become Capitol Christmas Tree

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Nevada-grown tree begins journey to become Capitol Christmas Tree


The Nevada Air National Guard in Reno will unveil a 53-foot Christmas tree on Tuesday — a Nevada-grown red fir that will travel across the country to the U.S. Capitol Building.

According to a news release from the Nevada Air National Guard, the tree was grown in the Carson Ranger District and has been temporarily housed at its Reno base. The Guard transported the tree on Sunday for decoration ahead of its whistle-stop tour through Nevada and beyond.

The tree will also appear in Carson City for the Nevada Day Parade on Saturday before continuing its journey east.

The U.S. Capitol Christmas Tree initiative is a 55-year tradition in which one of America’s 154 national forests provides a tree for the West Lawn of the U.S. Capitol during the holiday season.

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Jim Kaufmann, executive director of Capitol grounds and arboretum at the architect of the Capitol, selected this year’s tree from nine candidates identified by Forest Service staff in the Carson Ranger District in northern Nevada and the Spring Mountains National Recreation Area outside Las Vegas.

“Selecting a tree to adorn the West Lawn of the U.S. Capitol is a great honor,” Kaufmann said in a previous Forest Service release. “Forest Service staff showed me nine wonderful candidates during my visit. Ultimately, we selected a magnificent red fir to represent the Humboldt-Toiyabe National Forest and Nevada at the U.S. Capitol during the 2025 holiday season.”

The red fir, or Abies magnifica, grows at higher elevations and is known for its blue-green needles that point upward and dense, sturdy branches — ideal for displaying ornaments, according to the U.S. Forest Service.

Contact Akiya Dillon at adillon@reviewjournal.com.

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