Australian Prime Minister Anthony Albanese announced on Sunday that his government intends to reduce student loans for approximately three million Australians by 20%, effectively erasing around A$16 billion ($10 billion) in debt. This initiative is an extension of the measures introduced in May's budget, which focused on alleviating cost of living pressures and providing relief for student debts, along with increased investments to make medicines more affordable and enhancements to the rent assistance program.
"This will benefit everyone currently holding a student debt while we strive to improve the situation for all students in the future," Albanese stated in a release detailing the reduction in tertiary education loans. The government estimates that the average graduate with a loan of A$27,600 will see A$5,520 wiped off, with these changes set to take effect from June 1, 2025.
Additionally, the government has already proposed to lower the annual repayment amount for Australians with student debts and increase the threshold for repayment initiation. If re-elected in the next general election, scheduled for 2025, the Labor Party plans to legislate to ensure 100,000 free places annually at the country's Technical and Further Education institutes, according to Albanese.
"This is a period for construction, building a better educational system for all," he remarked in a speech to supporters in Adelaide, the capital of South Australia state. The issue of cost of living, exacerbated by persistent high inflation, is particularly significant with a federal election on the horizon, and the center-left Labour government is currently trailing behind its conservative rivals in polls.
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