Quote:
Originally Posted by Alex_Adviser
Withdrawals from a 529 plan are tax-free to the extent the account beneficiary incurs "qualified higher education expenses," or QHEE. The list of eligible expenses includes tuition, mandatory fees, books, supplies, equipment and the expenses of special needs beneficiaries. It also includes a capped amount of room and board if the beneficiary is at least a half-time student. However, QHEE does not include student loan repayments.
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Alex, see the link I gave in post #2 above. As I read that, it says that you could use 529 funds to repay a student loan as long as you do so in the year in which the expenses were incurred.
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Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
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