Here's where things may get confusing. 'Many people assume travel is covered,' Polimeni says. 'After all, students need to get to and from school. But as far as the tax law is concerned, expenses such as gas, parking and airfare are considered non-qualified expenses.' Likewise, pre-enrollment expenses such as test prep courses are, unfortunately, ineligible. So is health insurance, even if purchased through the school. Costs of extracurricular activities, from ballet lessons to membership dues at a sorority or fraternity, are also not eligible.