The Federal 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, if re-elected at the next election.
 
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.

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 Federal 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.

Quotes attributable to 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 debt, 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.”

Quotes attributable to Federal Member for Robertson, Dr Gordon Reid MP:

“Our government is focused on helping even more Australians with the cost of living.

“I know from speaking with our community across our region that student debts are a significant pressure on people’s budgets, I am pleased that our government will cut an extra 20% off student debts, for everyone.

“This is on top of our already announced education reforms to change the way student debts are indexed, plus raising the threshold to $67,000 before you start paying your student debt.

“Our government will continue to identify even more ways we can ease the cost of living for everyone in our community”, Dr Reid said.

ENDS