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Yes. But the family doesn't lose it. She can count the money you paid, when claiming the educational credit on her own joint return.
A related question is: Can you still claim her as a dependent. For an answer to that question, see:
If you are able to claim her as a dependent, then you can claim the educational credit.
It depends. If she qualifies as your dependent and you claim her on your tax return you can still claim the education credits. If she filed or will file a joint return with her spouse, you cannot claim her as a dependent and therefore you cannot claim the education credits. But as Hal_Al said, she can claim the credit on her tax return, if she qualifies.
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