Total student debt could be reduced by up to $14 billion – tens of thousands of dollars in savings for Australians – under new plans to revitalize Anthony Albanese’s ailing Labor Party ahead of the federal election .

The cabinet is reportedly exploring ways to ease graduate debt burdens, following the cost of living budget earlier this year.

One option being considered is simply reducing the total $70 billion in student debt by 20 percent, which would reduce individual loans by the same amount.

Under the Higher Education Loan Scheme (HELP), formerly called HECS, student loans are indexed to the Consumer Price Index, meaning graduates are stung by higher repayments when l inflation increases.

Therefore, other options being considered are to change or remove indexation for a given period, change reimbursement rates or suspend reimbursements for those on parental leave.

Government ministers are also considering raising the threshold at which graduates must start repaying their loans from the current income of $51,550.

The plans, first reported by the Sydney Morning Heraldare not yet finalized.

Total student debt could be reduced by up to $14 billion – saving individuals tens of thousands of dollars – under new plans to revitalize Anthony Albanese’s ailing Labor Party ahead of the federal elections (pictured: Mr Albanese visited TAFE Newcastle on Tuesday)

One option being considered is simply reducing the total $70 billion in student debt by 20 percent, which would reduce individual loans by the same amount.

But if approved, they would represent a bold argument from Labor to young voters who have been hit by rising interest rates and interest rates in the run-up to this year’s election next.

The Prime Minister has endured a torrid few weeks after the damaging revelation he bought his clifftop mansion for $4.3 million, during a cost of living crisis as many Australians have struggling to put food on the table.

This was compounded by the media frenzy around his alleged Qantas flight upgrades.

Mr Albanese denied personally asking former Qantas CEO Alan Joyce for an upgrade.

Treasurer Jim Chalmers has already made clear he wants to avoid any further cost-of-living cuts that could spur inflation.

This makes student debt changes more attractive because they avoid pumping more money into the economy.

Daily Mail Australia has contacted the Cabinet Office for comment.