<p>I know I’ve seen it somewhere that they must be undergrads, but I sure can’t find it. On the other hand, even if a student finishes in three years, it covers four calendar years. Just like the HOPE credit could only be used in the first two years, but covered three calendar years. Their first semester was usually fall. That was year one. Second year was end of freshman year, beginning of sophomore. Third year was end of sophomore, beginning of junior year.</p>
<p>The “gotcha” of them being independent for FAFSA would have nothing to do with it. They can still be dependents on your return assuming they are full time students, and under 24.</p>