All Australians will have their student debt cut by 20% next financial year, as part of a major federal government overhaul designed to boost access to education and address “intergenerational unfairness”.
The change, which will be outlined by the prime minister at a campaign rally in Adelaide on Sunday, will wipe about $16bn worth of debt and is being sold as a cost-of-living measure for young Australians.
According to government figures, a university graduate with an average debt of $27,600 will save $5,520. The 20% reduction is not capped and also applies to VET loans and apprenticeship support loans.
When combined with changes to how the indexation on student loans is set, as detailed in the May budget, close to $20bn of student…
