Allow use of 529 educational funds to be used to repay student loans without penalty or taxes.

Currently 529 fund contributions and gains can only be used by the beneficiary to fund education expenses incurred in the tax year in which such expenses were paid without being subject to both federal and state taxes as well as a penalty. As such any 529 funds withheld in anticipation of an economic recovery and a higher yield of the balance cannot be used to repay student loans or expenses from prior years. The tax code for 529 usage needs to be adjusted to eliminate this inequity and alleviate the burden of student loans upon young people just entering the workforce. An education expenses is an education expense regardless of the year it was paid.