Tuition for a recent grad

Hi - I'm helping my son with his first real round of taxes.  He graduated university in May 2021.  In prior years he'd been a dependent on my taxes, but now cannot as he is working and on his own.  He still got a 1099-T that covers the tuition and scholarships for his last year of school.  We're using the Desktop TT Premier.  I went through the workflow under education deductions to enter the info from the 1099-T and it gave him a greater refund.  

My question/concern is that the tuition paid was funded through a 529 distribution that his grandparents funded.  It feels strange that my son can take a deduction for tuition that he didn't personally pay.  But perhaps that is correct as no one else can claim him as a dependent in this year.  

Can he take this deduction, or have I missed something?  Thank you!