What are qualified educational expenses?
How can you use 529 plans to pay off the student loan debt?
Are you aware of other education deductions?
What are tax credits?
Try to find out whether you’re eligible for the American Opportunity Tax Credit. You can manage to get tax credit worth 100% of the first $2,000 of qualified educational expenses. You may get additional 25% of the next $2,000 in qualified expenses; you can get $2,500 per student per tax year. You can avail the benefit for the first four years of a college education. But students in the second bachelor's degree are not eligible.
Therefore, you need to keep the above mentioned criteria in mind when you plan to use 529 plans to pay off debt.