There's a simple solution: forgo the $3 refund and just don't file a tax return for her, it's not required (under 12,550). States usually follow fed filing rules, somewhat.
https://ttlc.intuit.com/questions/2903200-do-i-need-to-file-a-state-return
You said " I put down that she got $17025 in scholarships and then later how much she had for room and board". Don't do that. TT uses the R&B amount as the taxable amount, because R&B is a "non-qualified" expense. Only the difference between scholarship and qualified expenses (usually the difference between box 5 and box 1) is the taxable amount. You've already calculated that ($5334). Here's a workaround: At the 1098-T screen, enter 0 in box 1 and $5334 in box 5, and $5334 as the amount used for R&B. No other numbers.
You said "Both my kids have student loans and scholarships. One has $17025 from scholarships and grants and her payments per 1098-T is $13940". I'm assuming none of the $17,025 was from loans. Loan $ are not treated like scholarships. Loans are basically ignored.
