Tuition paid by scholarships and grants is not eligible for the AOTC. However, tuition paid by loans is eligible.
If the student, over age 23, has grants or loans, that will affect the support calculation in determining whether he qualifies as a dependent. Loans co-signed by the Mom count as support provided by the Mom.
If the student is Mom's dependent, she may claim the AOTC regardless of who paid the tuition; him, her or even you.
