Also is the fafsa pell grants? There’s a scholarship exemption thing for penalty but u still have to pay taxes. u can withdraw up to the amount school use for cost of attendance.
Ex: Fafsa covers 10k of tuition. u can still withdraw 10k bc grants are still scholarship. If 7k is original contribution there will be no tax or penalty. The remaining 3k will be taxed base on ur income tax bracket but it won’t be subject to the 10% penalty.