This amount is not eligible for an education credit.
Veterans' Benefits
Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax-free. Don't include these payments as income on your federal tax return.
If you qualify for one or more of the education tax benefits discussed in chapters 2 through 11, you may have to reduce the amount of education expenses qualifying for a specific tax benefit by part or all of your VA payments. This applies only to the part of your VA payments that is required to be used for education expenses.
You may want to visit the Veterans Administration website at www.gibill.va.gov for specific information about the various VA benefits for education.