For an academic period (quarter, semester, etc.) beginning in the first 3 months of a calendar year, you can pick which year to pay the expense and take the credit. That is, pay in December 2016 and take the credit in 2016 or pay in, say, February, 2017 and take the credit in 2017.
Your family may be able to save tax by foregoing the education credit and taking an available exemption for program distributions instead.
