Should claim college student as dependent or not?

Parents return

1. ineligible for education credits due to income limits
2. $0 Child tax credit or credit for other dependents from Schedule 8812

College student return

1. has qualified college expenses in excess of Coverdell/529 distributions
2. has about $17k earned income, with taxes withheld; so need to file return to get refund
3. can be claimed as dependent; therefore, ineligible for refundable portion of AOTC

Any tips about pros and cons of NOT claiming the student as dependent on parents' return?

Pros:

1. Possibly get AOTC credit on student federal return?

Cons:

1. No cons for parents' federal return?
2. Losing dependent exemption on parents NJ state return?

Thanks!