It depends. The course materials and texts must be required for your program. For the Lifetime Learning Credit they must be paid to the school, but for the American Opportunity Tax Credit, if they are required for your program, they can be purchased elsewhere. If these costs meet the criteria, they are not deductible but they are eligible for an education tax credit. The expenses may be used towards a credit in the year they are incurred, not when the loan is paid back.
See: Education credits - AOTC and LLC, How do Education Tax Credits Work?
