re: Student Loans

Are these loans in her name, or are these Parent (PLUS) loans?

Also, are these government backed loans, or private loans?

If the funding would come via a 401(k), you probably are unable to take the money out unless you do it as a loan, and even then there may be limits - check with your plan.

If it is in an IRA, you will owe tax on what you take out, plus 10% penalty. Let's say you are in a 30% combined federal plus state tax rate, plus 10% penalty - 40% total. So you will need to take out $83K to net $50K. You also lose the growth of that money in your tax-deferred account.

If you borrow against your 401(k) you won't owe tax or penalty, but still lose the investment growth of that money (but you do get interest income... less a fee).

If it is her loans, and they are government loans, have her qualify for income based repayment. There's just too much up in the air right now about possible forgiveness that I would not be in any rush to pay those off.

You can refinance them, but I would not do that unless rates come down.

If they are private loans, they will not be forgiven, but I would still not take money out of an IRA to pay them off. She can pay them off, and you can help her with extra cash if you have it from time to time.

If they are PLUS loans and you are responsible for them... you may not qualify for much if any relief. I would probably still not take money out of an IRA to pay them off... but you may want to throw any extra cash you can at them.