Yes, it does need to be reported. Reporting it on line 1h of form 1040 is OK. Line 8r of Schedule 1 is the more appropriate place. It essentially gets taxed the same either place (nothing will change if you amend).
A little more discussion at:
https://ttlc.intuit.com/community/college-education/discussion/re-i-received-a-stipend-from-my-schoo...
