For those students and ex-students with HELP, or what was called HECS debt, in Lismore and the Northern Rivers, there is some good news today as the Australian Federal Government has cut all student debts by 20 per cent.

In Australia, that is three million people with student debt at a cost of more than $16 billion.

The government says its number one focus is continuing to deliver cost-of-living relief for all Australians, and that cutting student debt by 20 per cent will ease pressure on workers and students across the country. 

For someone with the average debt of $27,600, this will see $5,520 wiped from their outstanding Higher Education Loan Program (HELP) loans. 

Backdated to 1 June, this is lifting the burden for Australians with student debt, including all HELP, Vocational Education and Training (VET) Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans. 

In addition to cutting student debt by 20 per cent, the federal government is raising the minimum amount before people have to start making repayments from $54,435 to $67,000 and is reducing minimum repayments. 

For someone earning $70,000, it will reduce the minimum repayments they have to make by $1,300 a year. 

This builds on government reforms to fix the indexation formula, which has already cut more than $3 billion in student debt. 

This means, all up, the government will cut close to $20 billion in student debt for more than three million Australians. 

The ATO will now begin the work of processing the cut.

This will take a little while, but the 20 per cent cut to student debt is guaranteed.

Most people will see their balance reduced before the end of the year, backdated to June.

Prime Minister Anthony Albanese said, “This is another way my Government is continuing to deliver cost-of-living relief to Australians. 

“We promised cutting student debt would be the first thing we did back in Parliament – and that’s exactly what we've done.

“Getting an education shouldn't mean a lifetime of debt. 

“No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you.” 

Minister for Education Jason Clare said, “We promised we would cut your student debt by 20 per cent and we have delivered.

“This is a big deal for 3 million Australians. 

“This will save millions of Australians thousands of dollars.

“The average student debt today is $27,600; this will cut that debt by $5,520.

“Just out of uni, just getting started, this will take a weight off their back. 

“We are also cutting annual repayments. For someone earning $70,000 a year, it will cut the amount they have to repay every year by $1,300.

“That’s real help with the cost of living. It means more money in your pocket, not the government’s.” 

Minister for Skills and Training Andrew Giles said, “At the election, students and apprentices sent a resounding message of support for our Government’s plan to cut student debt by 20 per cent.

“Now, we’ve delivered on this commitment, making a real difference to the lives of students and apprentices – including nearly 300,000 TAFE students and apprentices.

“The Albanese Government is backing Australians with cost-of-living relief, and backing them to pursue an apprenticeship or qualification that sets them up for their future.”