Carl
Level 15

Get your taxes done using TurboTax

Thanks for clarifying. The loans make a difference, provide you are the primary borrower on the loan. There's two things that matter here.
First, understand that borrowed money is not *your* money. It never was, isn't now, and never will be. The borrowed money must also be of sufficient amount for the tax year for you to have paid more than 50% of your own support. For example, lets say your tuition for the year was $5K, rent/utilities for the year was $15K. That comes to $21K spent on "support".
However, you received $15K in scholarships/grants, 1099-Q funds and gifts. The IRS applies that money first to your tuition and support. That's more than half of your support provided by third parties, and not you or your parents. So your parents qualify to claim you even if you took out a $100K loan.
Now if you do qualify for the self-exemption as well as qualify to claim the education credits, the credits you claim and are allowed to deduct from your taxable income can not exceed your tax liability on *your* *earned* *taxable* income. Keep in mind that borrowed money is not your money, and therefore *you* don't pay taxes on it. Ever.
In the future, if the loan is a *qualified student loan*, then in the tax year you start paying it back you'll receive a 1098-E reporting the interest you paid in that tax year. You will be able to claim and deduct from your taxable income, the interest you paid on the loan, provided you have the taxable income to deduct it from of course.
It's also important to note what counts as support too. For example, using your money to pay for a spring break Caribbean vacation is not support. Neither is using your money to buy a new car; especially if other means of transportation to/from work/school are available to you, such as a local bus service. When enrolled in college as a full time student, the IRS considers you a student first, above all else - even if you work full time.