Australia wipes $16 billion off student loans
Australia's parliament has passed a law to cut student loans by 20%, wiping more than $A16 billion ($NZ17.47 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living.
The law is the first passed by Prime Minister Anthony Albanese's centre-left Labor Party since being re-elected in May with one of the country's largest-ever majorities.
'We promised cutting student debt would be the first thing we did back in parliament – and that's exactly what we've done,' Albanese said in a statement.
'Getting an education shouldn't mean a lifetime of debt.'
Education Minister Jason Clare said the measure would help 'take a weight' off the backs of young people.
'Young Australians don't always see something for them on the ballot paper, but they did this year and they voted for it in their millions,' he said at a press conference.
'And we're repaying now the trust that these young Australians have placed in us.'
Millennials and Generation Z made up 43% of the 18 million people enrolled to vote in Australia's May general election, outnumbering Baby Boomers.
Seizing on the generational shift, Labor made cutting student debt a key election promise, framing it as a measure to ease living costs and tackle intergenerational inequality.
The government said reducing student loans by one-fifth was equivalent to more than $A16 billion in debt relief for three million Australians.
It would mean a university graduate with an average loan of $A27,600 would have $A5520 wiped, the government said, adding the changes would be backdated from June 1, 2025, before the loans were indexed 3.2% for inflation.
The law would also raise the minimum repayment threshold from an income of $A54,435 to $A67,000, reducing the amount low-income earners would have to pay.
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RNZ News
2 days ago
- RNZ News
Australia wipes AU$16 billion off student loans, targeting cost of living relief
by Prime Minister Anthony Albanese. Photo: MIKE BOWERS / AFP Australia's parliament on Thursday passed a law to cut student loans by 20 percent, wiping more than AU$16 billion (NZ$17.4 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living. The law is the first passed by Prime Minister Anthony Albanese's centre-left Labor Party since being re-elected in May with one of the country's largest-ever majorities. "We promised cutting student debt would be the first thing we did back in parliament and that's exactly what we've done," Albanese said in a statement. "Getting an education shouldn't mean a lifetime of debt." Education Minister Jason Clare said the measure would help take a weight off the backs of young people. "Young Australians don't always see something for them on the ballot paper, but they did this year and they voted for it in their millions," he said at a press conference. "And we're repaying now the trust that these young Australians have placed in us." Millennials and Generation Z made up 43 percent of the 18 million people enrolled to vote in Australia' May general election, outnumbering Baby Boomers. Seizing on the generational shift, Labor made cutting student debt a key election promise, framing it as a measure to ease living costs and tackle intergenerational inequality. The government said reducing student loans by one-fifth was equivalent to more than $16 billion in debt relief for 3 million Australians. It would mean a university graduate with an average loan of $27,600 would have $5,520 wiped, the government said, adding the changes would be backdated from 1 June 2025, before the loans were indexed 3.2 percent for inflation. The law would also raise the minimum repayment threshold from an income of $54,435 to $67,000, reducing the amount low-income earners would have to pay. -Reuters
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2 days ago
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Australia wipes $16 billion off student loans
Welcome Festival at the University of Sydney. Stock photo: Getty Australia's parliament has passed a law to cut student loans by 20%, wiping more than $A16 billion ($NZ17.47 billion) in debt for 3 million people, and fulfilling a key election promise to help mitigate the rising cost of living. The law is the first passed by Prime Minister Anthony Albanese's centre-left Labor Party since being re-elected in May with one of the country's largest-ever majorities. 'We promised cutting student debt would be the first thing we did back in parliament – and that's exactly what we've done,' Albanese said in a statement. 'Getting an education shouldn't mean a lifetime of debt.' Education Minister Jason Clare said the measure would help 'take a weight' off the backs of young people. 'Young Australians don't always see something for them on the ballot paper, but they did this year and they voted for it in their millions,' he said at a press conference. 'And we're repaying now the trust that these young Australians have placed in us.' Millennials and Generation Z made up 43% of the 18 million people enrolled to vote in Australia's May general election, outnumbering Baby Boomers. Seizing on the generational shift, Labor made cutting student debt a key election promise, framing it as a measure to ease living costs and tackle intergenerational inequality. The government said reducing student loans by one-fifth was equivalent to more than $A16 billion in debt relief for three million Australians. It would mean a university graduate with an average loan of $A27,600 would have $A5520 wiped, the government said, adding the changes would be backdated from June 1, 2025, before the loans were indexed 3.2% for inflation. The law would also raise the minimum repayment threshold from an income of $A54,435 to $A67,000, reducing the amount low-income earners would have to pay.
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