The issue seems to be how to treat the "tuition remission" (in other words, tuition reduction) on the 1098-T. The $23,000 is a tuition reduction. My understanding of the IRS instructions for Form 1098-T is that a tuition reduction is not a scholarship, and should not be included in box 5. It's not a payment received from a third party.
Chapter 1 of IRS Publication 970 has a long discussion of tuition reductions. Whether the tuition reduction is taxable income depends on whether it is payment for teaching, research, or other services, and whether the student is an undergraduate or a graduate student, among other factors. But in all cases, if the tuition reduction is taxable it's supposed to be reported as wages on a W-2, not as a scholarship in 1098-T box 5.
So my conclusion is that it's box 5 that's wrong, not box 1. The university really did receive payments of only $107.50. But there was no $23,000 scholarship. The $23,000 didn't pay for anything, because there was no $23,000 payment. It was a price reduction, not a payment. But if I'm right, it doesn't change Hal_Al's recommendation to report the correct amounts and ignore the incorrect 1098-T.
I will add that Hal_Al knows a lot more about tax benefits for education than I do, so if he disagrees with my conclusion I defer to him.
