Australia Slashes Student Debt by 20%

The Australian government will reduce student loans by 20%, cutting A$16 billion ($10 billion) in debts for approximately three million citizens. Prime Minister Anthony Albanese announced these cuts, effective June 2025, as part of efforts to ease cost of living pressures and improve financial stability.

The Australian government has announced plans to cut student loans by 20%, easing financial burdens for around three million citizens by wiping off A$16 billion ($10 billion) in debts. Prime Minister Anthony Albanese made this announcement as part of broader efforts to alleviate cost of living pressures.

This debt relief measure builds on initiatives outlined in May's budget, which also included making medicines cheaper and boosting a rent assistance program. Albanese emphasized the plan benefits current students with debts and seeks to improve financial conditions for future students.

The average graduate debt of A$27,600 will see a reduction of A$5,520 beginning June 1, 2025. Additional plans include lowering annual repayment amounts and increasing the income threshold for repayments. Labor, if reelected in 2025, aims to guarantee 100,000 free places in Technical and Further Education institutes yearly.

(With inputs from agencies.)