What are qualified higher education expenses?

For the purposes of the Hope and Lifetime Learning credits and the tuition and fees deduction, qualified education expenses include tuition and certain related expenses paid to an eligible postsecondary education institution. Student activity fees, as well as costs for books, supplies, or equipment are not considered qualified education expenses unless they are paid directly to the institution as a condition for enrollment or attendance. Room and board, transportation, and personal expenses, even when related to attendance at a postsecondary institution, are not considered qualified education expenses.

For the purpose of the student loan interest deduction, qualified education expenses are the total costs of attending an eligible institution, including tuition and fees; room and board; books, supplies, and equipment; and other necessary expenses (such as transportation).