Does a disbursement from a qualified state education plan to a university for tuition for my 24 year old full time student count as income on his return?

My student received a 1099Q from the qualified plan and a 1098T from the university.  The qualified pre-paid tuition plan paid for tuition and fees, I paid room and board. I claimed the student on my tax return, so she is filing a return as a dependent.  She had less than $1,000 earned income and Turbotax is including the disbursement from the qualified plan as additional income.