The Australian government has enacted a new law slashing student loan debts by 20%, effectively cancelling over US$10 billion owed by more than three million former and current students.
The reform, passed on Thursday, was a key campaign promise by Prime Minister Anthony Albanese aimed at easing the financial burden of education and addressing the
country’s rising cost-of-living pressures.
“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 released after the bill’s passage. “Getting an education shouldn’t mean a lifetime of debt.”
In Australia, most students finance their higher education through government-backed loans. However, with the cost of a standard university degree exceeding US$25,000 (approximately A$40,000) annually, many graduates face long-term debt obligations that can take decades to repay.
According to the prime minister, the newly approved measures will reduce the average student debt—currently around US$18,000—by US$3,500 per person.
The debt relief initiative is part of a broader plan by the Albanese administration to make education more accessible and affordable while addressing the growing economic strain on young Australians.
EduTimes Africa, a product of Education Times Africa, is a magazine publication that aims to lend its support to close the yawning gap in Africa's educational development.
