Existing federal Loan

[sciolino]

Would it be worth putting money into a 529 plan and use it to pay an existing federal loan?

[dcandmc]

When would you put the money into the 529?
When would you take the money from the 529 to pay the existing loan?
When were the proceeds from the loan spent and what did they pay for?

If you have money to put into a 529 right now, why don't you just pay off the existing loan right now?

[alec33]

Under current law you cannot pay off your student loans with 529 plan funds, still there are two possible approaches:
-- if you are still in school, take a distribution from the 529 plan for qualified higher education expenses and use the proceeds to pay off the debt.
-- take a nonqualified distribution to pay off the debt
For more details go to :
http://www.savingforcollege.com/articles/avoid-these-529-withdrawal-traps

10 states where you can stretch your 529 on private school

Here's who really uses 529 plans and what they save

http://yourhomeworkhelp.org/do-my-statistics-homework/
https://www.ici.org/research/stats/529s/529s_16_q4
https://www.irs.gov/newsroom/529-plans-questions-and-answers
https://www.bankrate.com/finance/college-finance/tap-529-plan-funds-to-repay-student-loan.aspx
https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html