Education

The 1099-NEC instructions specifically say:

https://www.irs.gov/pub/irs-pdf/i1099mec.pdf

Scholarships. Do not use Form 1099-NEC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2. Other taxable scholarship or fellowship payments (to a degree or nondegree candidate) do not have to be reported to the IRS on any form, unless section 6050S requires reporting of such amounts by an educational institution on Form 1098-T, Tuition Statement. See section 117(b)–(d) and Regulations section 1.6041-3(n) for more information.

You should contact the issuer for an explanation.

Was your son required to perform any services as a condition of receiving the grant?  If so, that is why he received a form 1099NEC.

Or

To keep things simple, you can prepare the Schedule C using the Form 1099 NEC as income and deduct the expenses, including the tuition and other expenses up to income.  However, you will have to upgrade software as Turbotax Deluxe will not accommodate Schedule C

Beginning with tax year 2020, the IRS will require your self-employment income of $600 or more to be reported on Form 1099-NEC (non-employee compensation) instead of Form 1099-MISC.

The IRS explains that if the following four conditions below are met, then the payments must be reported as non-employee compensation: 

1. The payment was made to someone who is not an employee
2. The payment was for services in the course of trade or business (including government agencies and nonprofit organizations)
3. The payment was made to an individual, partnership, estate, or maybe a corporation
4. The payments to a person totaled $600 or more during the year 

 Also, a business may need to file a Form 1099-NEC if they withheld federal income tax under backup withholding rules even if the amount if less than $600.