Grad school doesn't normally qualify, Grad school in the fall does count if the student finished his undergrad degree in the spring, The technicality is that you had not completed the first four years of post-secondary education as of the beginning of the taxable year.
https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers Scroll down to Q.9.
Q. So if I got my bachelors in 3 years, did not use the AOTC at all, I would think I can use the AOTC for my first year of grad school. Right?
A. No. The fact that you received a bachelors degree means you completed 4 yeas of school (you got 4 years worth of credits).
