You May Get a Tax Surprise if You Use This Account to Repay Student Loans

You May Get a Tax Surprise if You Use This Account to Repay Student Loans

The American College of Financial Services
CNBC
December 27, 2019

As discussion of the effects and implications of the SECURE Act continues among financial professionals, a lot of attention is being paid to how the Act could potentially help those in higher education pay back their student loans. However, experts say there might be a catch to this apparent win for students.

The new law would allow students to use their existing 529 college savings plans to repay education loans. However, what’s not clear is how taxes weigh into the equation--and whether the states themselves will choose to honor or ignore the Act’s provisions.

For more, read commentary from Ross Riskin, assistant professor of taxation at The American College of Financial Services, in CNBC this week as he discusses some points students and their families should consider moving forward.

More here!