File photo dated April 6, 2016 of the University of Sydney campus.
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Australian Prime Minister Anthony Albanese said on Sunday that his government plans to reduce student loans for about three million Australians by 20%, eliminating about 16 billion Australian dollars ($10 billion) in debt.
The move is based on May’s budget, which attacked cost-of-living pressures in Australia and offered debt relief for students, as well as more investment to make medicine cheaper, and increased rental assistance programs.
“This will help everyone with student loan debt today, as we work hard to get a better deal for every student next year,” Albanese said in a statement announcing the student loan cuts for higher education.
The changes mean the average graduate with a loan of AU$27,600 will have AU$5,520 written off, the government said, adding that it will take effect from June 1, 2025.
The government says it plans to reduce the amount Australians with student loans must pay each year and raise the threshold for starting repayments.
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, Albanese said.
“It’s time to build, build better education for all,” he said in a speech to supporters in South Australia’s state capital Adelaide.
Cost-of-living pressures, caused by sky-high inflation, have particular resonance with the upcoming federal election and the centre-left Labor government currently polling behind its conservative rivals.
