Submitted by WCPACP@COMCAST.NET on Fri, 2014-10-31 11:37 Forums: IRA Discussion ForumHi. Does the 10% exemption before 59 1/2 from an IRA or 401k for education expenses include student loan payments? Thanks in advance. Education exception Permalink Submitted by email@example.com on Fri, 2014-10-31 15:01 The 10% exemption does not apply to loan payments. It is only good for current education paid in the same tax year as the withdrawal.