Yes. You will be required to pay the 10% penalty since you were not aged 59 1/2 when you withdrew the funds and paying college funds is not listed as a qualifying exception for a 401-K plan.

Please view the IRS link below to see a list of exceptions to the 10% early withdraw penalty.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...