In a bid to win over young voters, the Labor government has promised to slash student debt by 20 per cent if it wins the next federal election. Here’s what this could mean for folks who are struggling with paying back their student loans, as well as Aussie voters who are looking to make an informed decision.
Prime Minister Anthony Albanese announced the student cut pledge last week, which would see $16 million in student debt wiped for around three million Aussies.
“I will always fight for every young Australian to have access to a good education. My Government will make sure our education system is fairer and affordable for every Australian and we won’t delay unwinding the damage caused by the former Coalition Government,” Albanese said.
“This will help everyone with student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.
“No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.”
How much is 20 per cent off student loans?
To put things into numbers, if someone has an average outstanding HELP debt of $27,600, they could potentially see around $5,520 slashed from their loans in 2025.
Aussies with an outstanding debt of $60,000 or more could potentially see $12,000 cut.
Alongside the pledge to slash debt, the Labor government have also promised to build on tertiary education reforms such as delivering 500,000 fee-free TAFE places and doubling the number of University Study Hubs.
When would it come into effect?
The next federal election is expected to take place in May 2025, meaning that if Albanese is re-elected, the changes could come into effect by June 1, 2025.
On Sunday, Education Minister Jason Clare told Sky News this was a priority for the Labor government.
“If we are re-elected, this will be the first piece of legislation that we introduce to the Parliament after the election,” Clare said.
“And it’ll make a massive difference for a lot of young Australians right across the country, not just young Australians, though – everybody that has a student debt cut by 20 per cent.”
Who will be affected by these changes?
Labor’s plans to scrap a further 20 per cent off student loan debts will impact Aussies who’ve accessed “HELP, VET Student Loans, Australian Apprenticeship Support Loans and other-contingent student loan support” that exist on June 1 2025, according to a media release.
Following the announcement, the opposition foreign spokesperson Simon Birmingham slammed Labor’s pledge, questioning where the money would come from to cover it.
“This isn’t real reform, this doesn’t change the student fees that someone who starts university next year pays. This is simply a cash splash from Anthony Albanese,” he said, per SBS News.
Greens deputy leader Dr Mehreen Faruqi called for the government’s proposed changes to come sooner rather than later.
“After years of blocking us, Labor is finally starting to listen to the Greens about the need to address soaring student debt, but it’s a small step well below what is needed,” she shared on Saturday.
Albanese’s promise comes days after he was embroiled in controversy for nabbing freebies — such as free upgrades — from Qantas.
Image source: Getty Images
The post Labor’s Election Promise To Slash Student Debt By 20%: What You Need To Know appeared first on PEDESTRIAN.TV .
