Q. Can she deduct the amount as a credit since it was not over $5,250?
A. No. There is no provision for the employee to take a deduction, on her tax return.
The new law allows the employer to exclude the money from the employee's W-2, so that she doesn't have to pay tax on it. She should go back to het employer and ask for a corrected W-2. It may be that the employer's reimbursement plan does not qualify for the exclusion, if it was set up prior to the new law. But it would be worth looking in to.
Reference: https://thecollegeinvestor.com/33583/employer-student-loan-assistance-tax-free/#:~:text=Section%2022....
