You can't claim the loan repayments as an education expense. However, you can claim all of the tuition and required fees as an education expense, regardless of who paid them to the college, to the extent you have to pay them back.
So, lets say in year one your tuition was $8,000 and $5,000 was paid for by your employer. Your education expense would start out at $8,000 for that year.
If the college paid for $3,000 of your education expenses, that would be scholarship income, so you would need to reduce your education expense by that amount to determine your net expense for the education credit.
So in this example, your net expense for the education credit would be $5,000, the amount of money you have to pay back to your employer.
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