The person claiming the student's exemption gets to claim the education expenses. So, if she is your dependent you claim the education expense. If she claims herself, she claims them.
Now comes the question of who is allowed to claim her exemption. For 2012, that will (apparently) depend mostly on when she moved out and whether that move out was temporary.
A child of a taxpayer can still be a “Qualifying Child (QC)” dependent, regardless of his/her income, if:
1. he is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support
3. Lived with the parent (or was temporarily away at school) for more than half the year