University of Sydney campus file photo on April 6, 2016.
Brendan Thorne | Getty Images News | Getty Images
Australian Prime Minister Anthony Albanese said on Sunday that the government plans to cut the student loans of about 3 million Australians by 20%, thereby eliminating about A$16 billion ($10 billion) in debt.
The move builds on May’s budget, which eased Australia’s cost of living pressures, eased student debt, increased investment to lower drug prices and boosted rental assistance schemes.
“This will help everyone who currently has student debt while we work to make things better for every student in the years to come,” Albanese said in a statement announcing the cuts to higher education student loans.
The changes will mean a graduate with an average loan of $27,600 will pay $5,520 less, the government said, adding that the changes will come into effect on June 1, 2025.
The government says it has plans to cut the amount Australians with student debt must repay each year and raise the threshold at which repayments can begin.
Albanese said Labor would also legislate to guarantee 100,000 free places a year in the country’s technical and further education institutions if re-elected at the next general election in 2025.
“This is the moment to build better education for all,” he said in a speech to supporters in South Australia’s capital, Adelaide.
Cost-of-living pressures caused by stubbornly high inflation have special resonance with the upcoming federal election and the centre-left Labor government currently trailing its conservative rivals in opinion polls.
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