Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
Using 529 Funds for Student Loan Repayment
Episode 84 of The College Savings Podcast explores the SECURE Act provision that allows 529 plan beneficiaries to use up to $10,000 in tax-free withdrawals to pay down student loans. Lucas and Luna walk through the rules: the lifetime limit per beneficiary, how it applies to siblings, and the interaction with the student loan interest deduction. They discuss strategic timing—whether to use 529 funds during school to reduce borrowing or after graduation to target high-interest loans. A case study compares a family who pays tuition directly vs. one who lets loans accrue and then uses 529 funds…
The skinny
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