I suspect that the scholarship money may have been used to pay for "nonqualified expenses" or that the money exceeded the "qualified expenses."
These terms are explained here https://www.irs.gov/faqs/interest-divid[product key removed]-of-income/grants-scholarships-student-l...
and
https://www.irs.gov/taxtopics/tc421
Regarding whether or not your daughter needs to file I return, I think so. You can verify this at
https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return
Click the "Begin" button at the bottom of the info.
