Whoever is claiming the student's dependency exemption (either themselves or parents in most cases) is the one eligible for education tax breaks, so you're right, the parents should enter the form if they are claiming the student as a dependent. However, the student should also put the form on their return too because grants/scholarships that exceed tuition and other qualified expenses are taxable income to the student. TurboTax will properly give the parents tax breaks (if eligible) and properly put the taxable income from the scholarships (if any) on the student's return.
