Q. Will we be still be able to use the balance of the 529 funds to cover his student loans once he finishes?
A. No. A qualified distribution must be taken in the same year that there were qualified educational expenses. You cannot withdraw the money "later" and have it count for the tax free treatment. Furthermore the amount you withdraw must not be more that the expenses, in that year, to be fully tax free. Room & board are also qualified expenses if the student is half time or more. Board includes food even if the student lives at home.
There is $10,000 limit for college and trade schools. The $10K limit is for primary and secondary private schools and student loan payments
