Australians will have 20 per cent of their student debt wiped out under a major new plan to be announced by the Albanian government.
The Prime Minister will unveil the proposal in Adelaide on Sunday, saying the government will ensure the education system is “fairer and more affordable for all Australians”.
“I will always fight for all young Australians to have access to a good education,” Albanese will say, according to excerpts of his speech.
“We are already fixing indexation and today we are going further, removing 20 percent of student debt, for everyone who has student debt.”
About $16 billion in student debt is expected to be eliminated from all existing student loan accounts starting in June of next year.
This will mean HELP’s average debts of $27,600 will be reduced by approximately $5,520 next year.
The change will apply to all HELPs, veterinary student loans, Australian Learning Support Loans and other income-contingent student loans.
Albanese said the move will help those with student debt “now” as the government works to “deliver a better deal for every student for years to come.”
Australians will have 20 per cent of their student debt wiped out under a major new plan to be announced by the Albanese Government (pictured, students at the University of New South Wales).
“Our entire nation benefits when we make it easier for people to access education,” he said.
‘It’s about opening the doors of opportunities and expanding them.
“No matter where you live or how much your parents earn, we will work to ensure the doors of opportunity are open for you.”
Legislation for the compromise will be introduced next year.
The changes come after the government overhauled the way student loans are indexed, retroactively dated June 1, 2023, which will eliminate $3 billion of student debt.
The important move comes just a day after the government pledged to raise the minimum repayment threshold for student loans.
Albanese is expected to land in Adelaide this weekend for a campaign rally with South Australian Premier Peter Malinauskas.
Albanese, called ‘Building Australia’s Future’, is set to unveil a plan to save average HELP debt holders about $680 in payments per year at the rally.
Anthony Albanese is set to announce that $16 billion in student debt will be eliminated from all existing student loan accounts starting June of next year.
The plan to make “the system better and fairer” would increase the minimum payment threshold from about $54,000 in 2024-25 to $67,000 in 2025-26 and index it to keep it at 75 percent of income. the graduates.
I would also move payments to a marginal payment system in line with the recommendations.
This means that graduates would pay a percentage of all income above a threshold rather than a percentage of total income once a threshold is reached.
A graduate earning $70,000 annually would see their minimum payments reduced by $1,300, while a graduate earning $80,000 would receive an $850 cut.
The relief would apply to graduates earning up to $180,000 a year.
Anyone earning more than that will still pay a flat 10 percent rate.