SYDNEY (Reuters) - Australian Prime Minister Anthony Albanese said on Sunday that his government planned to cut student loans for around three million Australians by 20%, wiping around A$16 billion ($10.49 billion) in debts.

Australia’s Labor government has pledged to cut A$16 billion ($10.5 billion) in student loans for university and other higher education to help ease the rising cost of living.

The Albanese government’s pledge to push through sweeping student debt reforms if re-elected is under fire from all sides, with the opposition calling it an inflationary cash splash and the Greens accusing Labor of holding young Australians “ransom”.

While Australians should contribute to the cost of their tertiary education, the current system has imposed an unreasonable burden on many young people.

Along with the debt reduction, Labor also intends to increase the HECS repayment threshold from AUD54,000 ($39,500) to AUD67,000 ($49,000). This means graduates would only start repaying their debt when earning above this new threshold.

The move builds on May’s budget, which attacked cost of living pressures in Australia and gave debt relief for students, as well as more investment, to make medicines cheaper, a

Australia’s center-left Labor government has pledged to cut A$16 billion ($10.5 billion) in student loans for universities and skills colleges ahead an election due by May, aiming to counter voter frustration at rising living costs.

Australian Government to Slash Student Debt by 20%, Benefiting Millions The Australian government, led by Prime Minister Anthony Albanese, has announced plans to cut student loans by 20%, providing debt relief