Student Loan Forgiveness Form Navient

The U.S. Small Business Administration has released a form of one page that simplifies the application for the cancellation of Paycheck Protection Program loans. The form is also updated with new forms that comply with the most recent stimulus legislation. 

The COVID-19 aid package Congress adopted last month revived the PPP with $284 billion of funds for small businesses that want forgiveness loans to help them deal with the financial fallout from the coronavirus pandemic. The legislation required that the SBA provide simplified forms within the first 24 hours after the bill’s passage into law. This was to simplify the process of applying for forgiveness. It also included conditions that encourage community banks to make more loans, especially to minority-owned businesses who were unable to obtain loans in the past.

Student Loan Forgiveness Form Navient

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

Forgiveness terms in the initial draw of PPP loans

Student Loan Forgiveness Form Navient – First Draw PPP loans made to borrowers who meet the criteria are eligible for total loan forgiveness within the 8 to 24 week period that follows the loan’s disbursement

  • The same goes for the compensation and employees.
  • The loan proceeds are spent on payroll and other eligible expenses; and
  • At least 60% of profits go towards expenses for payroll

Second Draw PPP Loan Forgiveness The terms

Second Draw PPP loans made to borrowers who meet the criteria are eligible for full loan forgiveness if during the 8– to 24-week time period after loan payment:

  • The levels of compensation and employee pay are maintained in the same way as required for the First Draw PPP loan
  • The loan funds could be used to pay expenses for payroll or other eligible expenses.
  • A minimum of 60% of the proceeds are used to pay for payroll expenses
  • How to request loan forgiveness and when

A borrower may apply for forgiveness only after all loan proceeds to which the borrower has applied for forgiveness have been utilized. Borrowers can apply for forgiveness anytime up until the date of maturity of the loan. Borrowers who don’t request forgiveness within 10 month of the end date of the loan are able to receive the loan payment from their PPP lender.

Download Student Loan Forgiveness Form Navient

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