Students from Luxembourg aged from 18 to 30 and young people aged up to 20 will be able to benefit from free bus, rail and tram travel in Luxembourg starting August 1, 2017.

The new measure was announced on Friday, following pressure from the "Association des cercles d'étudiants" (ACEL) and other organisations to expand the free transport offer in Luxembourg.

"We want to allow young people to study in the best conditions. This is a way for the country to invest in its future,” Higher Education Minister Marc Hansen said announcing the measure on Friday.

Luxembourg students can access the offer with the new “mKaart”, which can be obtained from a CFL by showing an ID card and proof of enrolment in a higher education institution, be it in Luxembourg or abroad. This process must be repeated annually in order to renew the pass.

The offer is expected to benefit around 25,000 students.

The new regime replaces the current system whereby students aged under 25 may purchase the “Jumbokaart”, a subsidised season ticket for all forms of transport costing 75 euros.

Since October last year, all secondary school students were entitled to use public transport free of charge by using the “mycard”.

This new expansion of the system will leave a 165,000 euro hole in the State's coffers this year with the scheme expecting to cost the State 500,000 euros annually (from 2018).