The Australian government is set to cut student loans for about three million Australians by 20 per cent, getting rid of about A$16 billion ($10 billion) worth of debt as part of a crackdown on the rising cost of living and high inflation.
The changes will see the average graduate with A$27,600 in loans lose A$5,520, adding that they will take effect from 1 June 2025. The Government said it already plans to reduce the amount Australians with student debt have to pay each year and raise the threshold for starting repayments.
“This will help everyone with a student debt right now, while we work hard to deliver a better deal for every student in the years ahead,” Prime Minister Anthony Albanese said in a statement announcing the cut to student loans for tertiary education.
Besides this, Albanese also said that if re-elected at the next general election, due in 2025, Labor will also introduce legislation to guarantee 100,000 free places a year in the country’s technical and further education institutions.
The measure builds on May’s budget, which was aimed at tackling the cost of living in Australia and included debt relief for students, as well as additional investment to make drugs cheaper and a boost to the rental assistance programme.
In Australia, the pressures of rising living costs and persistently high inflation have particular resonance with the upcoming federal election, and with the centre-left Labour government now trailing its conservative opponents in the polls.
