Australia slashes student loan debt by 20%, wiping out US$10 billion for over 3 million students

Australia passed new legislation on Thursday to reduce all student loan debts by 20%, delivering on a major election promise and clearing a combined US$10 billion in debt for more than three million current and former students.

The move, announced by Prime Minister Anthony Albanese, is part of a broader effort to ease cost-of-living pressures. Many Australians rely on government loans to fund higher education, with basic university degrees now costing upwards of US$25,000 (approximately Aus$40,000) per year.

“We promised cutting student debt would be the first thing we did back in parliament — and that’s exactly what we’ve done,” Albanese said in a statement. “Getting an education shouldn’t mean a lifetime of debt.”

According to the Prime Minister, the average student loan in Australia is around US$18,000, and the new measures will cut approximately US$3,500 from that figure.

The legislation is expected to provide immediate financial relief and long-term benefits for millions of Australians who have struggled under the burden of rising education costs and stagnant wages.