There is a 2% floor only if it is reported in Schedule A typically as a work expense for a master's program. However, in this case, it is a deduction to determine AGI, which comes before the Schedule A deductions. So disregard the 2% floor because it doesn't apply here.

In a tax return, you enter the entire amount ($17,000) even though the maximum is $4,000 (per nolifecpa). With a name like that, he must know what he's talking about. The software will automatically enter it on the form then flow it into line 34.

It doesn't matter where the tuition money came from. What matters is that he paid it. But his father could deduct it as a Hope credit if his son is claimed as his dependent, since he paid for it.