Australia clears Sh1.3 trillion in student loan debts

Education university student money loan savings. [Courtesy/GettyImages]

Australia passed laws Thursday to slash all student loan debts by 20 percent, clearing a combined US$10 billion of debt held by more than three million students.

Many Australians use government loans to help pay for university courses or other tertiary study.

But with university fees soaring -- a basic degree can cost US$25,000 (about Aus$40,000) or more each year -- students are increasingly saddled with hefty debts that can take decades to clear.

Prime Minister Anthony Albanese pledged to cut student loan debt as a key cost-of-living measure in a general election earlier this year.

"We promised cutting student debt would be the first thing we did back in parliament -- and that's exactly what we've done," he said in a statement.

"Getting an education shouldn't mean a lifetime of debt."

The measures will cut US$3,500 from the average student debt of US$18,000, Albanese said.