The borrowers in question are those aged above 60. The move will cost the government RM4.2 million.
All other PTPTN borrowers who earn at least RM1,000 a month will be subject to a progressive loan repayment schedule which will see them pay between 2% and 15% of their monthly income, depending on income level.
Minimum wage currently stands at RM1,050.
Pakatan Harapan (PH) had pledged in its election manifesto that borrowers who earned less than RM4,000 a month could defer their loan repayments.
For PTPTN borrowers, the government also announced that companies which help their employees settle their remaining loans will enjoy a tax relief.
Lim also announced an RM2,000 increase in additional individual tax relief from the current RM6,000, for all additional savings deposited in the PTPTN National Education Savings Scheme.
“Discounts on the loan will be given to students from bottom 40 (B40) households who have successfully obtained first class honours in their studies,” he said.
Former PTPTN chairman Shamsul Anuar Nasarah previously urged PH to decide whether it would implement a policy allowing borrowers who earn less than RM4,000 to defer their loan repayments as this would have far-reaching implications.