Yes, you can include this amount. It doesn't matter how your educational expenses were paid; eligible expenses can be deducted whether they were paid out-of-pocket or through a student loan. However, you must have attended an eligible educational institution to be eligible for claiming an education credit. A qualifying educational institution is any college, university, vocational school, or post-secondary educational institution eligible to participate in a student aid program administered by the US Department of Education (which is pretty much every accredited post-secondary educational institution).
Please view this TurboTax FAQ for more information about claiming an education credit.
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