American Opportunity credit
Students who are pursuing a course of study that will eventually lead to a degree and are in their first four years of school -- or those who are paying for their educations -- may be eligible to claim the American Opportunity credit. The credit covers the tuition payments you make plus the cost of purchasing the books and supplies you need, as long as you maintain at least half-time status.
With the price of tuition rising, it’s not difficult to qualify for the maximum credit; the hard part is finding the money to pay for those expenses. When you use student loan funds to finance your education, the IRS allows you to include the expenses you pay with those funds in the credit.