Sydney: Australian Prime Minister Anthony Albanese has announced that his government plans to reduce student loans for approximately three million Australians by 20 percent, effectively eliminating around A$16 billion (USD 10 billion) in debt.
The significant initiative builds on measures introduced in the May budget aimed at alleviating cost-of-living pressures in Australia. The budget included provisions for student debt relief, increased investments to lower medication costs, and enhancements to a rent assistance programme.
“This will help everyone with student debt right now, while we work hard to deliver a better deal for every student in the years ahead,” Albanese stated as he unveiled the details of the loan reduction for tertiary education.
Under the new policy, the average graduate with a loan of A$27,600 ($10,011) will see A$5,520 ($3,556) wiped from their debt.
Hear it here first: a re-elected Labor Government will wipe 20% off your student debt. pic.twitter.com/EpWUgxTJKE
— Anthony Albanese (@AlboMP) November 2, 2024
These changes are set to take effect on June 1, 2025. Additionally, the government plans to reduce the annual repayment amount for those with student debt and raise the income threshold required to initiate repayments.
Albanese further committed that, if re-elected in the next general election scheduled for 2025, the Labor Party would legislate to guarantee 100,000 free places each year at Australia’s Technical and Further Education institutes.
“This is a time for building, building better education for all,” he emphasised in a speech to supporters in Adelaide, the capital of South Australia.
With federal elections on the horizon, the Labor government faces growing pressure due to persistent inflation and rising cost-of-living challenges, currently polling behind their conservative rivals.
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