Why Australia wiped billions off student loans for millions of people
Three million Australians have their student debt cut
- Australia's parliament has passed a law to cut student loans by 20 per cent, fulfilling a key election promise.
- This legislation will wipe more than A$16 billion in debt for three million Australians.
- Prime Minister Anthony Albanese stated that the measure aims to ease the rising cost of living and ensure education does not lead to a lifetime of debt.
- Education Minister Jason Clare highlighted that the law would 'take a weight' off young people, acknowledging the significant support from millennials and Generation Z.
- The changes, backdated from June 1, 2025, also include raising the minimum repayment threshold for student loans from an income of A$54,435 to A$67,000