I think you need to accept the fact that you're not going to get this straighten out in the educational expenses section of TurboTax. Yo need to use one of the alternatives. Delete the 1098-T and the student.
Alternative #1: Delete the 1099-Q (don't enter it at all since you know none of it is taxable. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms.
Alternative #2 (thise will generate the worksheet showing none of it is taxable. Instead of entering the educational expenses in the education expenses section, enter them in the 1099-Q section of TT. The workaround is: when asked who is the student, check "someone not listed here" (Lying to TurboTax to get it to do what you want does not constitute lying to the IRS). On the next screen, enter the real student's name. This will eventually give you one simple screen to enter all expenses.
