Millions of Australians are set to benefit from a historic $16 billion cut to student debt in the coming weeks.<\/p>\n
About 100,000 will receive the \u201cbest text message ever\u201d over this weekend from the Australian Taxation Office, informing them their Higher Education Loan Program (HELP) debts have been reduced by 20 percent.<\/p>\n
Education Minister Jason Clare described the move as the biggest reduction in student debt in Australia\u2019s history. \u201cThis will be $16 billion of debt wiped off the backs of young Australians,\u201d he said on Nine on Saturday.<\/p>\n
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By continuing you agree to our Terms<\/a> and Privacy Policy<\/a>.<\/p>\n \u201cFor many young people just out of TAFE, university, or leaving home, this is a significant relief,\u201d Mr Clare said.<\/p>\n How much will student debts go down?<\/p>\n Australians with university tuition loans, including HELP and HECS debts, are seeing their balances trimmed by 20 percent, backdated to June 1, 2025, prior to indexation.<\/p>\n Someone with an average debt of $27,600 will have more than $5,500 wiped from their balance, translating to around $1,300 saved annually on minimum repayments if earning $70,000.<\/p>\n Education Minister Jason Clare said the relief is already making a big difference. \u201cJust out of uni, just getting started, this will take a weight off their back,\u201d he said.<\/p>\n The reduction is being automatically applied, beneficiaries simply receive notification via text or email once their debt is adjusted.<\/p>\n Who benefits and how much?<\/p>\n The cut benefits holders of:<\/p>\n HELP loans (HECS-HELP, FEE-HELP, STARTUP-HELP, SA-HELP, OS-HELP)VET Student LoansAustralian Apprenticeship Support LoansStudent Start-up LoansStudent Financial Supplement Scheme<\/p>\n