Australia Slashes Student Debt: A New Dawn for Graduates

On Thursday, Australia's parliament passed a groundbreaking law reducing student loans by 20%, effectively erasing over A$16 billion in debt for three million citizens. This legislative move fulfills a crucial election promise by Prime Minister Anthony Albanese's Labor Party, aimed at mitigating the rising costs of living.

Prime Minister Albanese emphasized the importance of this law in his statement, asserting, "Getting an education shouldn't mean a lifetime of debt." His stance was supported by Education Minister Jason Clare, who noted that the law relieves financial burdens borne by young Australians, a demographic that played a significant role in the recent general election.

This generational shift was evident as Millennials and Gen Z voters represented 43% of the 18 million enrolled voters, surpassing Baby Boomers. The new law not only cuts student debt but also raises the minimum repayment threshold, easing financial pressure on low-income earners.

(With inputs from agencies.)