Q. I paid $10,000 for granddaughters education expenses but can't claim her as a dependent is this deductible?
A. Yes, but not by you. The parents (if the student is their dependent) may count what you paid in claiming the tuition credit for themselves. Although the general rule, in taxes, is that you must be the one making the payment, to get the deduction or credit, there is an exception for education.
If she is not a dependent, the student may count what you paid in claiming the tuition credit for herself (there are some restrictions for students under 24)