I didn't ever intend to repay the $5k loan with the $30k withdrawal.  I withdrew the $30k because I had education expenses of $30k.  On my facts, I believe I could still withdraw $10k on some future date to pay off student loans BUT I just could never withdraw any money from my 529 plan to pay off the $5k loan because it isn't a "qualified education loan" under section 221(d)(1) and section 529(c)(9).  The real point of the question, however, was whether section 529 would require me to reduce the original distribution to $25k or whether I could withdraw the entire $30k tax-free.  I believe I can withdraw $30k tax free and I don't see anything in section 529 that would say otherwise.