Question Can I claim an education credit for higher education expenses paid for with the proceeds of a government-subsidized student loan? Answer Yes, higher education expenses paid with the proceeds of a government-subsidized loan may qualify for the credit. Additionally, you claim the credit in the year in which you pay the expenses, not in the year in which you repay the loan. Additional Information Publication 970, Tax Benefits for Education Education Credits: Questions and Answers Education Credits--AOTC and LLC Am I Eligible to Claim an Education Credit? Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits) (PDF) Category Childcare Credit, other credits Sub-Category Education credits
