Taiwan's legislature approved free tuition for students from the poorest fifth of families, a clear win for low-income households but a smaller step than opposition lawmakers wanted.

• Students at universities and vocational colleges whose families fall in the bottom 20% of household income will no longer pay tuition.
• Computer and internet costs can now be covered by student loans, alongside existing loan items.
• The government must also offer repayment help to ease pressure on borrowers.
• The KMT push to have the state pay all student loan interest did not make it into the law, only into a side resolution asking the Education Ministry to study it for next school year.
• The waiver applies only to students with Taiwanese citizenship and household registration.

Outlook: The Education Ministry will set the detailed rules and amounts, with pressure to revisit full interest subsidies in the next school year's budget.