Education

You are correct that if the amount in Box 5 for Grants/Scholarships on your 1098-T is larger than the amount in Box 1 for Tuition, you would not qualify for an Education Credit and the 1098-T should be entered on the Student's tax return (if they are required to file a return) and reported as Taxable Scholarship Income. 

When entering your 1098-T, you can indicate that part of the Scholarship amount is reported elsewhere as Income if they also received a W-2 or 1099-Misc reporting this amount. 

If this does not apply, you can indicate that part of the Scholarship was not used for Education Expenses.  At the 'Here's Your Education Summary' page, EDIT the Scholarship item (screenshot).

Continue and you will be able to  enter the amount used for Room and Board as an RA (screenshot).

You would then still have the potential for an Education Credit. You may need to verify the amount of the total scholarship amount awarded for Room and Board with the school if you're not sure.