Australia's parliament on Thursday passed a law to cut student loans by 20 percent - removing over AU$16 billion in debt for 3 million people.

During this year's election, Labor made cutting student debt a key election promise, framing it as a measure to ease living costs and tackle intergenerational inequality.

Australian correspondent Murray Olds explained that the student loan cuts weren't just for degree holders, but trade students also got some of their course-related debts waived too.

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