Australia plans $10.5 billion in student debt cuts

Australia has pledged to cut A$16 billion ($10.5 billion) in student loans for university and other higher education to help ease the rising cost of living.

The Labor 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 Sunday from Prime Minister Anthony Albanese and other ministers. "My government will make sure our education system is fairer and affordable for every Australian," he 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 Saturday that the government will 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.