529 accounts to repay student loans
Can 529 money be used to pay student loan debt after students have graduated?
Terry Says
Yes, and it’s something new — but it has limitations!
The Setting Every Community Up for Retirement Enhancement Act, a spending bill known as the SECURE Act, established a lifetime limit of $10,000 from a 529 plan that can be used without any penalties or tax consequences to repay the beneficiary’s student loans, including federal and most private loans. An additional $10,000 can be used to repay student loans held by each of the beneficiary’s siblings.
