on the 1098-T, if Box 1 exceeds Box 5, the form goes on the parent's tax return
if Box 5 exceeds Box 1, then form goes on the student's tax return.
The student will probably have a lower tax rate than that parent, so while there may be surprise that the scholarship (net of Box 1) is taxable income, there may still be little to no tax to be paid. depends on the numbers and whether the student had other income.
All is not lost here.
