Sorry for the misinformation. Here is the correct way to do it.
After separating from service, roll the 401(k) over into an IRA. Then, take withdrawals from the IRA. Withdrawals from an IRA to pay qualified education expenses are exempt from the 10% early withdrawal penalty.
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
It is critical to understand that, although IRAs and 401(k)s have a similar purpose, they are controlled by different sections of the tax law and some of the rules are very different. Hardship withdrawals from the 401(k) are NOT exempt from the 10% penalty, unless you qualify for another exemption, and education is NOT an exemption for 401(k) withdrawals, even though it is an exemption for IRAs. A 401(k) loan is also not appropriate because, as soon as you quit, it will be converted to a distribution and subject to the 10% penalty.
Now, if you did take a loan from the 401(k) before quitting, you would have until April 15 of the year after you quit to repay the loan without tax and penalty. If you only needed the money temporarily, that might be a way to manage it. But if you don't repay the loan, it become a fully taxable distribution.
