SYDNEY (Reuters) -Australian Prime Minister Anthony Albanese said on Sunday that his government planned to cut student loans for around three million Australians by 20%, wiping off around A$16 billion ($10 billion) in debts. Additionally, the government intends to reduce annual repayments and raise the threshold for loan repayments, directly addressing the impact of Australia student debt on everyday budgets. #AustraliaStudentDebt
This decision expands on the measures in May’s budget, which addressed Australia’s rising cost of living by offering debt relief for students. Additionally, it included increased funding to lower medication costs and an enhancement to the rent assistance program.
“This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead,” Albanese said in a statement announcing the cut to student loans for tertiary education.
The changes mean that an average graduate with a loan of A$27,600 would see A$5,520 erased, the government stated. These adjustments will begin on June 1, 2025.
The government also announced plans to lower the annual repayment amount required from Australians with student debt and increase the income threshold for repayment.
If Labor is reelected in the 2025 general election, Albanese pledged to legislate for 100,000 free spots annually at Technical and Further Education institutes.
“This is a time for building, building better education for all,” he said in a speech to supporters in South Australia state capital Adelaide.
With a federal election approaching, cost of living pressures fueled by persistent inflation are increasingly significant. The center-left Labor government is currently trailing its conservative rivals in recent polls. #AustraliaStudentDebt
Addressing Economic Challenges Through Student Debt Relief
These measures are part of a broader strategy to make essential costs, like medicine and housing, more affordable. This commitment reflects a long-term approach to education affordability and economic stability. Ultimately, this substantial debt relief underscores the government’s focus on addressing Australia student debt while supporting broader living cost solutions.
