Hi, I was wondering if you can have both a 401k loan, and then get a hardship withdrawal. I want to go back to school, and with our income do not qualify for any financial aid. My 401k has about $16000 (minusing my loan) , and my loan is around $12000. My tuition for college will be about $12000 a year, and I have a little less than 2 years left to get my bachelors degree. (I have earned an AA degree previously)

Can I withdraw the full $16000 as a hardship leaving my account with essentially zero, and continue paying back my 401k loan? I do not know how else I will be able to pay for my education, and even at this, I will need to get creative for the rest. Any answers would help me out a lot!

Check with the plan administrator to see whether your plan allows this, but I doubt it. If it is allowable, you will owe income tax plus the 10% early withdrawal penalty on the $16K you withdraw. You want to make sure that they don't "convert" your existing $12K loan to a withdrawal, as you would then owe income tax and penalty on that as well.

Have you explored getting a standard student loan, rather than taking the withdrawal?

Thanks for your reply. My plan does allow hardship withdrawals to pay for education, I just wasn't sure about my particular situation. I do qualify for some student loan money, but it isn't enough to cover the cost of the tuition.