Are scholarships taxable in New Jersey?

[PSP]

I know what the NJ 1040 instructions say:

 Scholarships and Fellowship Grants. This type of income is taxable unless the scholarship or grant meets all of the following conditions:

1. The primary purpose of the grant is to further the recipient’s education or training; and
2. The grant does not represent payments for past, present, or future services that are subject to the direction or supervision of the grantor (e.g., a fellowship given in exchange for teaching); and
3. The grant is not for the benefit of the grantor.

How does NJ define "The primary purpose of the grant is to further the recipient's education or training."?

For example, my child received a scholarship that is enough to cover all IRS qualified ed expenses ( i.e., tuition, fees, books, etc.) as well as sufficient to cover room and board.  Is the latter part taxable?

Thank you.