is this specifically for college scholarships?  Does this apply to Elementary/Middle Private schools where we received scholarships?

If the scholarship was for a prior year, you should have entered it in that years tax return. You are a cash basis payer and always report cash basis. Let's say though you are billed and paid for 2018 spring tuition in 2017 and were getting a scholarship that isn't reflected in the 1098-T as it will be on 2018's. You MUST report monies for 3 month period of time after. So the scholarship which will be on the 2018 1098-T  must be entered on the 2017 tax return or you may get education breaks you should not be claiming.
The 1098-T is informational purposes and is not necesarilly cash basis, often it is accrual so there be adjustments to it.  You enter it in the education interview and in the scholarship section, there are further questions to allow you to indicate the scholarship was for another year. If you didn't report it in a prior year, or its for 2018  and it would have changed your education credits or created a change in taxes, you must amend the prior year. Any monies related to a future year, you must remember to report then.

A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree
at an eligible educational institution.

Candidate for a degree. You are a candidate for a degree if you:
1. Attend a primary or secondary school or are pursuinga degree at a college or university; or
2. Attend an educational institution that:
a. Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and
b. Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency.

@JamesFan  see above as you are correct that the IRS will look for it to be reported... I updated my answer for you.

So you mean I still need to report 1099misc but negate it as other income? I also noticed just simply input it as scholarship in education section, the 8863 and other forms don't reflect the scholarship amount, but only shows deducted tuition cost. Not sure if IRS can get that.

was the amount in box 3 or box 7?  If box 3 just report it in education section.  If box 7, report it as earned income as a 1099Misc. (when you enter your education expenses, your taxes will be reduced by the education section but if in box 7 do not report the scholarship in education area as you would then possibly double count the income).  It all depends what the monies were for if it is earned or unearned income. Earned is taxable such as if you taught a class as a TA to get monies and worked,  Unearned is if it can be considered only education sources, true scholarship monies for education that you did not work for.  Earned income may also have you eligible for earned income tax credits if you have dependents).

It is box 3, no tax retained. I submitted an application and  college selected me then gave me a check then 1099misc this year. So I can just ignore the turbo tax 1099misc item,  only put it under education area? Act as if college misreported the scholarship.

since amount is in box 3, you report it with the 1098-T, only amounts in excess of tuition would be taxable income.  TT would handle that for you.  You can be conservative and report it and do negative reporting it as Education scholarship so the IRS doesn't pull the return and the net impact will be the same.

I'm editing the answer as it is safest to report with negative.... Who needs return pulled. The payer should not have used the 1099Misc is the whole issue if it was pure scholarship monies for education and not earned. You should contact payer and send them IRS infor that I left in the answer, you may also want to contact IRS for the misreported amount.

Great thanks. But I had this question on another thread and got the answer that negate the number will draw IRS's attention. Could you look at it? <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4299369">https://ttlc.intuit.com/questions/4299369</a>

You can choose to enter only in education section and draw IRS attention as no 1099Misc entry or choose to report it and negate it and provide the reason and report it in education section where it belongs.....  If it is truly scholarship money and does not exceed your education expenses, the money is not taxable.  So either they see the 1099 reported and reversed and it draws attention or they don't see it reported and it draws attention....

Since the 1099-MISC was for an eligible scholarship and since you have entered education expenses in your return in prior years, you should declare this in the Education section of TurboTax as a scholarship. Even if you have no education expenses in your 2015 return, you should still use this approach.  TurboTax will include this data in Line 7 of your Form 1040

Thank you for your quick response - this is very helpful! Do I need to request that the school send a revised 1099-MISC since it was a scholarship? I just am afraid that it will show with the IRS that I did not report the 1099-MISC. Or will reporting it in the scholarship section suffice? Thanks again!

Any follow up on this? I have same condition and want to make sure this way is safe. Currently I report 1099misc and negate it in "other income". I'll get rid of it if no problem.