If there are no expenses to apply towards an education credit (if all tuition, fees, book and supplies were paid for with scholarships)
then there is no need to enters the 1098-T on the parents return.
Since there is taxable income from the scholarships, the student will enter the 1098-T on the student's dependent return and claim the taxable income.
There is one other option which is to have the student claim all 7,000 scholarship as earned income if it was used for something other than tuition, such as Room and Board, in which case you could use the 3,500 tuition (plus out of pocket costs for books, supplies) towards a credit.
If you decide to make more taxable income for the student in order for you, the parents, to be eligible for a credit, you will need to increase the income the student claims.
When you enter the 1098-T into the student's TurboTax account, the program should ask if the student needs to claim more.
IRS Pub 970 shows some good examples of coordinating credits and taxable income for the student.
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