Room & Board refunds, 529s and taxes

[BelknapPoint]

I was planning on taking the refund which is being deposited directly into our checking account and paying our daughter’s federal school loan with it. It won’t pay off the entire amount but it will take a large chuck of it away and that is at 0% right now. I read that you can’t pay interest with it but I think you can pay up to $10,000 of it with 529 money. This money was originally from her 529. She owes about 5K and her reimbursement will be about 3.5K.

Where did you read that student loan interest can’t be paid with 529 dollars?