Rick:  The rules state

An eligible student is a student who:

    Was enrolled in a program leading to a degree, certificate or other recognized postsecondary educational credential for at least one academic period beginning in the tax year.
    Carried at least half the normal full-time workload for the course of study.
    Didn't make an election to claim the Hope or AOTC (or a combination of both) for any 4 earlier tax years.
    Hasn't completed the first 4 years of postsecondary education before the beginning of the tax year.
    Doesn't have a federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year.

So if a student went to school in year 1 in the fall they most likely meet all requirements unless they did not take at least a half time workload.  So that counts as year 1 if they take the credit or not.

Terry:

Click on the link and read the rules.

Dusty Ernie