What does "was any of the scholarships not designated to pay 2016 expenses" is that what I paid out of pocket for tuition?

[Kadian]

No. This is asking about the scholarships and/or grants you have received (box 5 of the 1098-T). 

Sometimes you may be given a scholarship/grant in one year but all of it is not being used in that year. For example, you are granted $1,000 in August of 2016 but that money is to be split between your fall and your winter semester, This will mean some of the money is being used for 2016 while the rest is for 2017. 

Hope this helps, if you need further clarification, please let me know.