What kind of education credit or student loan interest can we deduct? Im going in circles!!

Im the sucker who does my families taxes such as parents, sister, brother, etc....

 

I have a situation,

My sister has been in college full time since fall 2015 and as a dependent on our parents taxes since that time.   So 2015, 2016, 2017, and 2018 we have claimed the American Opportunity Tax Credit (AOTC).    Now here we are in 2019 and she was full time in the winter to spring 2018-2019 and graduated in June 2019.    She lived mostly at home for 10 months of 2019 got a job and moved out, income of $12600 on her 2019 W2.  

Ok so far so good, she has almost no federal tax liability and is going to give Oregon a few hundred bucks.     She paid $612 in student loan interest, had $8600 in tuition payments and $1682 in grants for 2019.    I plug this info into my parents taxes and the deduction is $0   So I understand there is no more AOTC deduction since she has used up the 4 years.  Ok.   Turbo tax doesn't even bring up the Lifetime Learning tax credit or even any other education deduction after running through the entire education section.   In addition, turbo tax says the $612 in student loan interest paid in my sisters name cannot be claimed and must be claimed on my sisters tax return.  Ok go to my sisters tax return and plug it in and guess what??  Says no deduction can be had since she is a dependent claimed on my parents tax return.   What??  This is the circle I was talking about.  

 

Why no lifetime learning tax credit or Hope tax credit and where can this student loan interest be deducted?    

 

It gets better, On my parents tax return it says my sisters $1682 in grants has to be counted as income on my parents taxes since tuition claimed of $8600 is not qualified. 

Any help appreciated!  

Thanks