Form 1098-T

[Guest maxtax]

A graduate student received a 1098-T and the institution chose to put an amount in box 2 rather than box 1 (amount billed rather than amount paid). Student paid 10,000 in 2007 and took a penalty free IRA withdrawal in 2007 for 10,000. The amount billed (box 2 Form 1098-T) was 30,000 of which 12,000 was for spring 2008 and 18,000 was for 2007. If the remaining 20,000 owed the school was paid in 2008, by loan, can another 20,000 be taken out of the IRA in 2008 penalty free? Everything I am reading is saying that the IRA Distribution must be taken in the same year in which the qualified expenses are paid. The loan paperwork was done in 2007 but the bank did not actually disburse the loan amount to the school until Feb 2008. All 30,000 was for qualified expenses (tuition) I know everyone is busy now so thanks in advance for helping me out!