Tax and student loans?

Student loans and scholarships...tax help.?

• I just finished my B.A. in the spring in 2011 and will be claiming my tuition on my 2011 taxes. I am confused because I initially used student loans to cover the $4350 spring tuition bill, but about mid-way through the semester I received a $4000 scholarship. Since the loans had already covered the charges, I was refunded the $4000 scholarship. So, my question is, do I claim that I paid $4350 for qualified education expenses in 2011 or $350 (the difference between the scholarship and the amount I was billed)? I did not use the $4000 towards my tuition since it was awarded after my student loans paid. I wish now that I would have been smarted and applied the $4000 to my student loan debt! You live and you learn though!

• Answer:

  if I understand, you returned the $4000 scholarship? if so the money of the loan that was paid for tuition is your deduction or credit to take