Education Assistance Counts as Income?

1098-T box 1 = $60,862  Box 5 = $54,200

TT asks how much did student pay for Room & Board with scholarship?  Where does scholarship money get allocated?  Total expenses were $70,531 and $16,331 paid out of pocket...can all scholarship money go towards tuition (Qualified expense) - allowing me to answer $0 from scholarship to pay other (non-Qualified) expense?