Most college students under the age of 24 can still be claimed as dependents by their parents as long as they are full time students for at least 1 day of 5 months during the year. If she can be claimed as your dependent, you can claim the education credits for qualified education expenses paid out of pocket or with loans on your tax return. Expenses paid for with scholarships or grants cannot be claimed for credit. Most undergraduates qualify for the American Opportunity Credit which provides an up to $2500 of credit for up to $4000 of qualified expenses. Qualified expenses include tuition and fees, books and course related materials paid for out of pocket or with loans. Expenses paid in 2016 for the fall 2016 term and the spring 2017 term can be claimed for credit on the 2016 tax return.
She should keep receipts for her books and course related materials. She will get a 1098-T from the college showing her tuition and fees and scholarships and grants. If she has income from working and needs to file a tax return, she must indicate on her return that she can be claimed as a dependent by someone else (you). If she has scholarships and grants that paid for other than qualified education expenses such as room and board, these amounts must be reported as income on the student's tax return.
Here is a link to a TurboTax FAQ on qualified education expenses: https://ttlc.intuit.com/questions/1899852-what-are-considered-qualified-education-expenses
