Yes the amount in box 5 is smaller than box 1. My Wife received a 70% scholarship. Note that I also entered the amount paid to be the difference between box 1 and box 5. I made sure to tick no in the section that asks if the scholarship was used for board/lodgings etc.
What is really weird is that on line 1, when I input the 1098-T it puts in SCH xxxxxx (where xxxxx is the whole scholarship amount). So to confirm the whole scholarship amount is added into line 1
