Probably not, based on what you have stated. In order to be considered a qualified distribution (and therefore not subject to tax and the 10% penalty), the distribution from the 529 must be taken during the same tax year in which the qualified expenses it covers were paid. Since the student finished school in December, 2016, I'm guessing that there won't be any qualified expenses paid in 2017.
You could always take a non-qualified distribution to pay off the loans, and take the tax hit on the earnings portion of the distribution. If any grants or scholarships were received over the course of the student's college career, those could be used to offset some or all of the amount of the unqualified distribution and thereby reduce or eliminate the 10% penalty.
It's strange that the student took out education loans, and yet has 529 money remaining. Why wasn't the 529 money used to pay education expenses, instead of taking out loans?