Australia Cuts Student Loan Debt 20% for 3 Million

Australia's parliament has passed legislation to reduce all student loan debts by 20%, wiping over A$16 billion (approximately US$10 billion) in debt for three million current and former students. This move fulfills a key election promise by Prime Minister Anthony Albanese and his centre-left Labor Party to ease the rising cost of living and tackle intergenerational inequality. The law, backdated to June 1, 2025, will reduce an average student loan by about A$5,520 and also raises the minimum repayment income threshold from A$54,435 to A$67,000, easing repayment burdens for low-income earners. Albanese emphasized that education should not result in a lifetime of debt, while Education Minister Jason Clare highlighted the relief this measure provides to young Australians, who formed a significant voting bloc in the recent election. The policy is seen as a direct response to the financial pressures faced by Millennials and Generation Z and represents the first legislative act of the newly re-elected government. These changes are intended to provide both immediate financial relief and long-term benefits amid stagnant wages and rising education costs.