Usually, you may not claim a tuition credit for expenses paid (or reimbursed ) by tax free money (e.g. scholarships, grants, VA benefits or employer reimbursement). Employers are allowed to reimburse employees up to $5250 tax free. Anything over that is taxable and included as taxable income on your W-2. So, any expenses over $5250, including books, may be used to claim a tuition credit.
The fact that you used loan money does not change that. Tuition and other qualified expenses, paid by loans, counts as paid by you.
So, $14,028 - 5250 = $8778 may be counted in claiming the Lifetime Learning Credit (LLC).
