You can repay a sibling’s student loans up to $10,000 as well.
You may pay up to $10,000 of principal and interest on qualified education loans for a sibling of the beneficiary (including step-siblings). The limit is an aggregate lifetime limit per individual (beneficiary or sibling), from all 529 accounts.
Again, a tax deduction for qualified education loan interest will be reduced by the amount of the my529 withdrawal used for the qualified education loan repayment on your tax form.
Sam has two graduate sons. Son A received a scholarship and did not use his full 529 balance for school. Son B has $5,000 in student loans remaining. Sam can use the balance of Son A to pay off all or part of the loans of sibling Son B.
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