This comment ONLY applies IF you claim your daughter as a dependent.
If so, you may also want to consider having the grandparents gift the money to you and you pay her tuition. That may entitle you to a larger credit than if the gift is given to your daughter and she pays the tuition.
More information:
Information about Form 8917 Tuition and Fees Deduction, a link to the form, and instructions are here:
https://www.irs.gov/forms-pubs/about-form-8917
The instructions are listed after the form.
Make sure you will qualify for the deduction before taking action.
