Unfortunately, you are looking at the wrong page. You are looking at the page to determine whether a grant to an individual is a deductible expense for a charity. (Because in general, charities are supposed to be set up for public benefit and not the benefit of individuals. Charity payments to individuals are highly regulated.)
The award is taxable to the student.
What is potentially mitigating is the possibility of reporting the activity as a schedule C business, where the student can deduct their expenses. This isn't really an activity carried out as an "ongoing trade or business", but that may be the best way to report it.
Important question: Is this part of the student's degree requirement? Will they get a grade and course credit for the activity?
@Hal_Al any thoughts?
