Q. So just to clarify, whether the 1098-T is correct or not, I have no need to file it and pay taxes on it?
I'm afraid you can't ask the question that way. YOU have to decide whether the 1098-T is correct. From everything you described, I am convinced it is incorrect and I think @rjs is of the same opinion. You do not need to report that 1098-T or the numbers on it.
We see numerous cases of erroneous 1098-Ts, in this forum, and the school almost always refuses to correct them.
