Everything You Need to Know About 529 Plans and Student Loans
529 plans are a tax-advantaged way to save for higher education, but the penalty for making non-qualified withdrawals can be a huge headache for those who don't use all the money they've accumulated on schooling. Fortunately, recent law changes have opened up new ways to use these accounts, including paying off some student loans. Here's what you need to know if you're considering this option.
Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, 529 account holders can use up to $10,000 in 529 funds per beneficiary for the repayment of qualifying student loans. Families with multiple children can withdraw more than this.
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Source Fool.com
