Greetings Maureen:
You can use the 529 plan to reimburse you for any QHEEs (qualified higher education expenses) the beneficiary might have incurred, but as you said, it cannot be used to pay back the loan itself.
Thank you,
Brian Boswell
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.