Laws to cap the indexation rate for the Higher Education Loan Program at either the rate of inflation or the wage price index - whichever is lowest - passed federal parliament late Tuesday night after Australians were stung with a 7.1 per cent increase to their student debts in 2023 because of surging inflation.

The indexation changes will lead to $3 billion in debt being cleared over coming weeks.

"University is a lot more expensive today than when I was at university," Education Minister Jason Clare told reporters in Canberra on Wednesday.

"Wiping $3 billion in debt will fix that spike in inflation that happened last year and it'll make sure that never happens again."

People with an average HELP debt level will get a $1200 reduction on their loans.

Those with a debt of $45,000 will get a decrease of about $2000, while students with $60,000 owning will have debt lowered by $2700.

The changes were recommended in the university accords, a review of the tertiary education sector handed down in February.

The laws mean university students completing placement will receive payments to help with living costs from July 2025.

Students in degrees including teaching, nursing, midwifery and social work will receive an allowance of $319 per week.

With AAP.