Education

Yes, it matters.

Whomever is issued the 1099-Q is responsible for any tax on a taxable distribution.

Expenses used to offset tax on the distribution cannot also be used to claim an education credit. 

If the students are not your dependents, you will need to coordinate with them and decide which expenses you are taking. They in turn might need to adjust for that when they report Form 1098-T.

Going forward, you might consider having the financial institution send funds directly to the school, that way the 1099-Q will be issued to the students.

Also, are you sure they are not your dependents? Do they supply more than half their own support, or do you?

If they are your dependents, you claim any education credits attributed to their education expenses. 

A dependent is your Qualifying Child or Qualifying Relative;

Qualifying child
To qualify as a dependent, a child must also pass these tests:
• Relationship: Be your son, daughter, stepchild, eligible foster child, brother, sister, half-sister or -brother, stepbrother, stepsister, adopted child or the child of one of these
• Age: Be under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled
• Residency: Live with you for more than half the year, with some exceptions (at school is the same as living at home) 
• Support: Get more than half their financial support from you
• Joint return: Not file as married filing jointly unless only to claim a refund of taxes paid or withheld

Qualifying relative
A qualifying relative must meet general rules for dependents and pass these tests:
• Not a qualifying child: Isn't your qualifying child or the qualifying child of any other taxpayer
• Member of household or relationship: Lives with you all year as a member of your household or is a specific type of relative
• Gross income: Has gross income under $5,050
• Support: Gets more than half their financial support from you