First be sure that the student has a filing requirement. If they have no other income they might not have to file at all.
if filing is required the student goes to Deductions/Credits >Education and Scholarships and follow the interview.
They should be able enter the scholarship income in the screen which shows "Did you pay for room and board with a Scholarship or Grant ? Here you need enter how much of the Sch/Grants you paid for Room and Board. This will be added in 1040 Line 1 as SCH.
