<p>OK. I looked up the actual legislation that was passed by congress and signed into law. The AOTC legislation amends the Hope Credit legislation. There are no references in the AOTC legislation to undergraduate education. What it says is. “Credit allowed for first 4 years of post-secondary education” However, this is not really definitive, since language in the Hope Credit legislation may be more specific regarding eligibility.</p>
<p>My guess is that AOTC would be subject to whatever eligibility requirements exist in the Hope Credit legislation. If Hope Credit as/was limited to undergrad education, then AOTC probably is too. Clear as mud, eh?</p>
<p>Edit: I think much of the confusion here comes from the fact that the Hope Credit was for two years. No student was/is likely to complete and undergrad degree in less than two years. Four years is a different story. My son has a HS classmate that got his degree at a 4-yr college in only 2 years. After looking at the Hope Credit legislation I don’t see anything dictates undergraduate only or any limitation on eligibility after an undergraduate degree is obtained. Maybe there’s “hope” after all.</p>
<p>[Internal</a> Revenue Code Section 25A. Hope and Lifetime Learning Credit](<a href=“http://www.tcrs.com/policywatch/policydocs/25a.htm]Internal”>http://www.tcrs.com/policywatch/policydocs/25a.htm)</p>