Which of the Following Statements Is Not True Regarding the Education

Which of the following statements is not true regarding the education credits?

A) If a student receives a scholarship that is excluded from gross income,that amount should reduce qualified expenses.
B) If a dependent pays for qualified expenses,the expenses are deemed paid by the taxpayer.
C) If a relative makes payments for qualified expenses directly to the institution on behalf of the student,the expenses are deemed paid by the student.
D) Payments made using borrowed funds are not considered qualified expenses.