Our daughter has chosen a university and received her award letter. She received a $5,550.00 unsubsidized loans and a remaining cost of approx. $15,000 for the year. We have approx. $24,000 in a 529 in my name, listing her as the beneficiary. We would like her to take on some loan responsibility however, it seems like she should not have interest accruing and we should use the 529 (it is in the process of recuperating after the recent market decline).Since it is unsubsidized, is this just a bad deal for her and should not allow her to incur debt without first depleting the 529. My understanding is that a 529 cannot be used to pay down loan debt. Thanks!
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