Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
Why 529 Plans Now Cover Student Loan Repayments
In this episode, Lucas and Luna unpack a major change in 529 plan rules: using funds to pay down student loans, up to $10,000 per beneficiary, and the same amount for siblings. They walk through the practical details—how the tax-free treatment works, how it interacts with the student loan interest deduction, and strategies for parents who want to help without tripping the gift tax or financial aid quirks. They also compare prepaying tuition versus saving in a 529 for future loan payments, and discuss why this option might matter more for families who took on debt for a child's education…
The skinny
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