Q1. Can you pay up to $10,000 in qualified student loans from the 529 at any time, or are there any time limitations or rules?
A1. The only timing rule is that the distribution from the 529 plan must be taken in the same year that a payment (of the same amount, or more) was made on the loan.
Q2. If the loan was originally used to pay for expenses that were put towards the AOTC, can you then use the 529 to pay the loan.
A2. Yes. You do not have to subtract the AOTC expenses claimed, first.
