In a significant move to alleviate financial burdens, the Australian government announced it would cancel $10 billion in student loans for about three million Australians, representing roughly 20% of all debt holders, according to Prime Minister Anthony Albanese.
This decision builds on the government’s May budget, which focuses on addressing soaring living costs.
“This measure will support everyone with existing student debt as we work to provide better opportunities for every future student,” Albanese said in the official announcement.
The change means that the average graduate, with a loan of AUD 27,600, would see approximately AUD 5,520 canceled. The debt relief initiative is set to take effect on 1 June 2025.