Prime Minister Anthony Albanese has announced a significant plan to reduce student loan debt by 20% by June 1, 2025, which will average a reduction of $5,520 for borrowers.

The debt wipeout will encompass various loans, including HELP, VET Student Loan, and Australian Apprenticeship Support Loan, benefiting students primarily in New South Wales, Victoria, and Queensland.

Overall, the Albanese government plans to wipe approximately $16 billion in student debt, impacting around three million Australians, but will delay implementation until after the federal election in 2025.

New South Wales will see the largest impact, with 883,801 student loan holders benefiting from $5 billion in debt wiped, averaging $5,701 per holder, while Tasmanians will receive the least benefit at $4,561 per holder.

The plan has faced criticism from Opposition Leader Peter Dutton, who labeled it a 'card trick' aimed at regaining popularity, while National leader David Littleproud described it as a desperate and unfair giveaway.

Clare reiterated that the policy is intended to provide certainty to students, reinforcing the government's commitment to addressing student debt.

Education Minister Jason Clare emphasized that this debt reduction will proceed if Labor wins the upcoming federal election, contrasting the Liberal Party's opposition to the initiative.

This announcement follows the government's previous legislation that wiped an additional $3 billion from student debt by adjusting the indexation calculation after a 7.1% spike last year.

In contrast, the Northern Territory will have the least total debt wiped, amounting to only $82 million.