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C
cbunt92
January 25, 2021
Question

I just found out there is a Coverdell ESA in my name. I'm 29 and won't incur education expenses before I'm 30. Can I use my CESA to pay student loans without a penalty?

  • January 25, 2021
  • 1 reply
  • 0 views
My student loans were used solely for the purpose of education (graduate school, in this case). Is the repayment of student loans considered a qualified education expense? I wish to avoid the 10% penalty, if possible.

1 reply

N
npierson777
January 25, 2021

Yes, you can withdraw up to $10,000 from your CESA for repayment of your student loans without a penalty.

A tax deduction is also available for the interest payments you make when you start repaying your qualified education loans.

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