Canberra: Australia’s Labour government has pledged to cut A$16bil or about US$10.5bil in student loans for university and other higher education to help ease the rising cost of living.

The government plans to reduce all student loans by 20% from June 1 next year, affecting more than three million Australians, according to a joint announcement yesterday from Prime Minister Anthony Albanese and other ministers.

“My government will make sure our education system is fairer and affordable for every Australian,” Albanese said.

The measure will cut A$5,520 off an average loan of A$27,600.

This latest announcement comes on top of a separate statement last Saturday that the government would lower the amount of debt students have to repay as well as raise the repayment threshold.

Australians are grappling with rising living costs and sticky inflation, compounded by interest rates that are at a 12-year high. 

 - Bloomberg