I see no mention of trying to claim the American Opportunity Credit (AOC). I assume you're not eligible because of the income limit.
If you are eligible, you can claim it, by shifting $4000 (or maybe just $2000) of your expenses to it. You'll have to pay tax on more of the scholarship and/or 529 distribution. But, the AOC is 100% of the first $2000 and 25% of the next $2000.
