That is correct. Box 1 shows the total amount paid for tuition and other "QUALIFIED" education expenses from all sources. Whereas box 5 shows the amount of money received by the school from all third party sources. If box 5 is the lower amount, then the difference is the amount paid out of pocket.
If box 5 is the higher amount, then you may not qualify for any education credits, and the student will be taxed on the excess third part funds received.
Keep in mind also, that box 1 does not always include all qualified education expenses either. That's why the program will ask you for such expenses that were not included in box 1. Same goes for box 5 too.
