Slashing the debts of millions of university students will be a huge boost for young Australians, the Federal Education Minister Jason Clare says, as the federal government targets young voters.
The government announced its plans to cut 20 per cent off students’ debts, which would apply to $16 billion worth of loans, including all HELP, VET Student Loan, Australian Apprenticeship Support Loan and other income-contingent student support loan accounts that exist on 1 June next year, if Labor wins the next election
It means students with an average degree debt of $27,600 – an estimated three million Australians – would have their degree debt reduced by $5500.
Clare says the changes would provide much-needed support to students.
“A lot of young Australians are doing it tough at the moment. They’re just starting out, they’ve just finished their uni degree … this will cut the cost of that bill,” he says.
“It will 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.”
Opening doors of opportunity
The reform is set to be part of Labor’s push for a second term with Clare flagging that the cutting student debt would be the first piece of legislation brought to parliament under a re-elected Labor government.
“This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead,” he says.
“Our whole nation benefits when we make it easier for people to access education. This is about opening the doors of opportunity – and widening them.”
In his announcement of the proposed HELP debt cuts, Prime Minister Anthony Albanese laid blame at the feet of the former government.
“I will always fight for every young Australian to have access to a good education,” he says.
“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.
“This will help everyone with a student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.”
