Education

It depends.  Since you are claiming them as dependents, any Form 8863 to claim education credits will be a part of your tax return, not theirs.  You will be able to claim education credits if any of the education expense is paid through after-tax funds:  your funds, your dependents' funds, loans, or scholarship claimed as taxable income.  For the American Opportunity Credit, for example, if up to $4000 of qualified expenses are paid for using "after tax" funds, then the maximum credit may be claimed (provided all other requirements to claim the credit are fulfilled).  (This is, in fact, one of the strategies to claiming scholarship income as taxable, to take advantage of these credits)

You will not file Form 8614.  This form is if you claim interest and dividend income on your tax return.  That will not happen, because they have earned income that requires them to file a separate tax return.  Regardless, taxable scholarship is not interest or dividend income.  It is actually reported as a type of wages (although still classified as unearned income).

However, they might need to file Form 8615.  This will depend, though on just how much scholarship they are claiming, and their overall income.  Scholarship income can trigger the form, but it falls into somewhat of a weird category because it is also considered to be wages.  So if your sons' combined income (W-2 income + scholarship) is greater than the standard deduction (which should be 12,400), then Form 8615 might be needed.  If you see that your sons are reaching these levels, feel free to comment and we can clarify further.  Otherwise, no further action will be needed.