Navient Student Loan Forgiveness Verification Form

Navient Student Loan Forgiveness Verification Form

The U.S. Small Business Administration has released a single-page form designed to make it easier for applicants to complete the application process for forgiveness of Paycheck Protection Program loans, together with updated and revised forms to conform to the requirements of the latest stimulus legislation. 

Congress approved the COVID-19 relief package last month that included $284 billion of financing for small-scale businesses who needed loans. The money was intended to offset the economic impact of the coronavirus outbreak. The law requires that the SBA issue simplified forms within 24 hours of the signing into law. This was to simplify the process of applying for forgiveness. Additionally, it included conditions that encourage banks in the community to lend more specifically to minority-owned companies who were unable to obtain loans in the past.

Navient Student Loan Forgiveness Verification Form

“The Small Business Administration met the requirements to release the one page form for loan forgiveness under the PPP within 24 days of the date of the enactment of the Consolidated Appropriations Act, 2021,” wrote Ed Zollars, a partner at Thomas, Zollars & Lynch CPAs on his Current Federal Tax Developments blog for Kaplan Financial Education. “The agency also released more updated forms.”

Forgiveness terms in the first draw of PPP loans

Navient Student Loan Forgiveness Verification Form – First Draw PPP loans made to borrowers who are eligible can be granted complete loan forgiveness if they do so during the 8- to 24-week period after the disbursement of loan:

  • Employee and compensation levels are maintained
  • The loan proceeds are used on payroll expenses and other eligible expenses; and
  • Minimum 60% of profits go towards payroll costs

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans to qualified customers are eligible for loan forgiveness if the loan is paid within an 8 24 week time frame.

  • The levels of compensation and employee pay are maintained in the same manner as required for the First Draw PPP loan
  • The loan proceeds could be used to pay for payroll costs or other eligible expenses.
  • A minimum of 60% of the funds go to the cost of payroll
  • When and how do I apply for loan forgiveness

After all loan funds have been utilized the borrower is eligible for forgiveness. Borrowers can apply for forgiveness anytime up until the date of maturity of the loan. Borrowers who don’t request forgiveness within 10 months after the date they will be able to repay the loan are able to receive loan payments from their PPP lender.

Download Navient Student Loan Forgiveness Verification Form

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