As the federal government outlined its plans to cut student debt by 20 per cent should it win the next election, the Greens have promised to go a step further and forgive all student debt.
The proposal, being unveiled on Monday, would cost more than $54 billion over the next four years and $74 billion over the decade, according to modelling carried out by the Parliamentary Budget Office.
Modelling had showed university students would save $5500 a year without having to pay back HECS debt under the policy.
Greens higher education spokeswoman Mehreen Faruqi said the measure would provide greater cost-of-living relief.
Greens Senator Mehreen Faruqi: wiping student debt will make a tangible difference to many. (Bianca De Marchi/AAP PHOTOS)
"Wiping student debt will put money back in the pockets of people who desperately need it to make ends meet, pay rent or save for a deposit for their first home," she said.
"With everything from rents to grocery bills through the roof, wiping all student debt will make a real, tangible difference to so many people doing it tough."
It comes as the Greens earlier in November urged the government to lock in its 20 per cent reduction of HECS debt before the end of the year.
While Prime Minister Anthony Albanese said the government's measures would only come into effect if it wins the next election, due to be held by May, Greens leader Adam Bandt said there was support for the policy to come into effect sooner.
The government policy would affect $16 billion of student debt, with those with an average HECS bill of $27,600 to have it reduced by $5500.
Adam Bandt (left) wants change now, while Anthony Albanese has promised it after the election. (Lukas Coch/AAP PHOTOS)
But Senator Faruqi said the 20 per cent cut needed to go further.
"Student debt can't be fixed because student debt shouldn't exist. All student debt should be wiped," she said.
"If Anthony Albanese can go to uni for free, so should everyone else."
The Greens said the total debt scrapping would be a key issue on the table for negotiations in a hung parliament, with polls showing a minority government likely in the next term.
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