It's still deductible above the line. But phase out is low
by gregmorrissey (2024-02-25 17:07:52)

In reply to: Interest was deductible until the early 1980s. Vivid memory  posted by Moose84

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The interest deduction income phase out is comically low in my opinion.

Your daughter should look into PSLF and SAVE (or whatever they call the income based repayment plans now).

I do find it interesting how you look at it though. You call $12k a bail out. I'm interested to know how much capital gains tax was saved in the 529 plans. I'd guess it was significantly more than $60k (5 kids x $12,000). I'll admit I'm making the possibly wrong assumption that the full $700k was paid out of the 529. Also, depending on where you live, it's possible those 529 deductions saved you a decent amount of money in state income tax.

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