If your child uses your Post 9/11 GI Bill benefits, I believe that would allow for a penalty free distribution of a similar amount from a 529 account that names your child as a beneficiary. See page 60 of IRS pub 970 under the "Exceptions" to "Additional Tax on Taxable Distributions," specifically items 3.b. and 3.d.
https://www.irs.gov/pub/irs-pdf/p970.pdf