Australian Government to Slash 20% Off Student Debts in Major Reform

Prime Minister Albanese announces a $16 billion debt reduction plan aimed at easing financial burdens for millions of Australians with student loans.

The plan will reduce student debts by 20%, cutting approximately $16 billion from the national student debt total.
This initiative is part of a broader effort to address cost-of-living pressures and intergenerational inequality.
Graduates with an average debt of $27,600 will see a reduction of about $5,520 in their student loans.
The government will also raise the income threshold for loan repayments from $54,500 to $67,000, indexed to wage growth.
The reforms will include a shift to a marginal repayment system, reducing the financial burden on debt holders.