Yes, from what you provide, the student will need to file and most probably have a tax liability, HOWEVER scholarship income is not used for determining if he supplied half his own support, so even if he is away at school, if he intends to return home, you would reported that he lived at home all year and you could still claim him as your dependent.
You'll need to ask the school what Box 4 is reporting, it could be a class that was dropped and refunded.
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