Our daughter goes to school out of state. Part of her tuition is paid through scholarships, part is through federal student loans (through FAFSA) and part is through a bank collegiate loan in her name co-signed by us. She doesn't have any income. Can we claim this on our joint return or does this have to go on her tax return? Thanks!

You CAN caim both the tax credit (HOPE/Lifetime Learning or education deduction) and the student loan interest (if you making payment on the loan) if you are claiming your daughter as a dependent.