The Albanese Labor Government will cut a further 20 per cent off all student loan debts, wiping around $16 billion in student debt for around three million Australians.
By 1 June next year, the Government will cut 20 per cent off all student loans to reduce the debt burden for Australians with a student loan.
This will cut around $16 billion in debt, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts that exist on 1 June next year.
For someone with the average HELP debt of $27,600 they will see around $5,520 wiped from their outstanding HELP loans next year.
| Range of outstanding HELP debt | Number of Australians with a HELP debt | Range in debt reduction |
|---|---|---|
| $0-$10,000 | 791,000 | $0-$2,000 |
| $10,000-$20,000 | 585,000 | $2,000-$4,000 |
| $20,000-$30,000 | 501,000 | $4,000-$6,000 |
| $30,000-$40,000 | 380,000 | $6,000-$8,000 |
| $40,000-$50,000 | 250,000 | $8,000-$10,000 |
| $50,000-$60,000 | 147,500 | $10,000-$12,000 |
| $60,000+ | 276,000 | $12,000+ |
This will provide significant relief to Australian students and workers with a student loan debt and builds on our reforms to fix the indexation formula, which is cutting around $3 billion in student debt.
This means, all up, the Albanese Labor Government will cut close to $20 billion in student loan debt for more than three million Australians.
This builds on the Government’s announcement that from 1 July next year it will reduce the amount Australians with a student debt have to repay per year and raise the threshold when people need to start repaying.
Together these reforms also build on the Government’s substantial tertiary education reforms, including:
- Delivering 500,000 Fee-Free TAFE places
- Doubling the number of University Study Hubs
- Introducing legislation to establish the Commonwealth Prac Payment and expand Fee-Free Uni Ready Courses; and
- A commitment to introduce a new managed growth and needs-based funding model for universities, and establish an Australian Tertiary Education Commission.
Prime Minister Anthony Albanese:
“I will always fight for every young Australian to have access to a good education. My Government will make sure our education system is fairer and affordable for every Australian and we won’t delay unwinding the damage caused by the former Coalition Government.
“We’re already fixing indexation and today, we are going further by taking 20 per cent off student debt – for everyone with a student debt.
“This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.
“No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.”
Minister for Education Jason Clare:
“This is a game-changer for the more than three million Australians with a student loan.
“By 1 June next year, we will wipe around a further $16 billion from all Australians with a student dent, including Australians who went to uni and vocational education.
“This builds on our changes to make indexation fairer and all up this means we are wiping close to $20 billion in student debt.
“This is another significant reform that will help us build a better and fairer education system.”
Minister for Social Services Amanda Rishworth:
“This is great news for Australians with student debt – whether from studying at university or vocational education – the Albanese Government will reduce their debt alongside our changes to make indexation fairer.
“We want all Australians to have the opportunity for higher education, and our changes are making the system fairer and more affordable.”
Minister for Skills and Training Andrew Giles:
“This will deliver very welcome cost-of-living relief to the more than three million Australians who have student loans and is an example of the great Labor tradition of making education more accessible.
“This support applies to all government student loans including vocational training, so whether you’re an apprentice or a tradie, a carer or a nurse, if you’re paying off a student loan you’ll receive this cost of living relief.”