Albanese Government Proposes Student Debt Relief Amid Criticism

The plan to raise repayment thresholds and cut student loans by 20% is seen as both a relief for graduates and a potential fiscal burden.

The proposal raises the income threshold for student loan repayments from $54,435 to $67,000, easing financial pressure on recent graduates.
Economists welcome the threshold increase but argue the plan does little to address the rising costs of higher education.
The 20% reduction in student loans is criticized for disproportionately benefiting higher-income earners and increasing national debt by up to $16 billion.
Critics label the debt reduction as 'regressive' and akin to a 'reverse-Robin Hood' as it favors those already better off.
The changes are part of a pre-election strategy, with some viewing the debt relief as a political move to gain votes.