Current and former students who have HELP or the old HECS debt will see their fees reduced by 20 per cent at the end of next week as the Federal Government honours an election commitment.

Around the country, this will affect more than 3 million people, wiping almost $16 billion in total. Today alone, more than 1.5 million Australians will see their student debts cut by 20 per cent. That’s around half of all people with a student debt.

For someone with the average HELP debt of $27,600 this will see around $5,520 wiped from their debt.

Backdated to 1 June 2025 before the last indexation, it will reduce the burden for Australians with a student debt, including HELP, VET Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.

The federal government does charge a FEE-HELP loan fee of 20% on certain undergraduate FEE-HELP loans, applied to students in full-fee-paying places and calculated on each unit of study. So, in essence, that 20% is being dropped for those who are charged the fee.

You do not need to do anything to receive the one-off reduction, it will happen automatically. 

In addition to cutting student debt by 20 per cent, the federal government has also raised the minimum amount people earn before they have to start making repayments from $54,435 to $67,000. They have also reduced minimum repayments.

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

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

“Our Government promised to cut student debt, it was the first thing we did after the election in Parliament, and now we’re rolling it out.

“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 it, Australia voted for it, and now it’s happening.

“This is the biggest cut to student debt in Australian history.

“It means millions of young Australians will have thousands of dollars taken off their back.”

Minister for Skills and Training Andrew Giles said, “We want Australians to get the skills they want, for the jobs our country needs.

“The student debt cut means students and apprentices will have more money in their pocket and less stress to pursue qualifications for their future.

“Students and apprentices have told me time and time again about how big a difference this will make in their lives.”

Assistant Treasurer Daniel Mulinosaid, “The ATO is rolling out the biggest cut to student debt in Australia’s history.

“It means billions wiped from the debts of young people when they need it.

“This will make a big difference as they get started in their lives.”