In a groundbreaking move, the student debt of 100,000 Australians has been erased, amounting to billions of dollars in relief.

This action stems from the Albanese government’s campaign pledge to alleviate student loan burdens, which successfully passed through parliament in August and is being implemented starting today.

Overall, around three million Australians are set to benefit from the cancellation of $16 billion in various student loans, including HELP, VET, apprenticeship support, and student startup loans.

The new legislation also increases the income threshold for loan repayments, requiring individuals to earn at least $67,000, up from $54,435, while simultaneously lowering the minimum repayment amounts.

These measures build on an earlier $3 billion reduction in loan indexation, achieved by adjusting the index rate to the lower of either the wage price index or the consumer price index.

In a further initiative, the federal government disclosed plans this month for a second wave of student debt reductions, aiming to cut another $16 billion by June 1 of next year, with a 20 percent reduction in student loan debt.

“I will always fight for every young Australian to have access to a good education,” Prime Minister Anthony Albanese said in a statement at the time.

”This will help everyone with student debt right now, whilst we work hard to deliver a better deal for every student in the years ahead.”