Suppling an answer would be easier if we knew if you are claiming your daughter as your dependent.
1. You would be liable for tax on that distribution since you took it and the 1099-Q was issued to you, but if it isn't taxable, you needn't enter it.
If it isn't entered, the expenses paid cannot be used towards an education credit nor to offset other aid, such as a scholarship. same if it was used to pay student loans, the interest paid would not be a deduction.
2. You say she is filing as single student, but is she a dependent student?
How the 1098-T and 1098-E is entered depends on if the student is a dependent.
Time living away at school is the same as living at home.
The issue is if the student supplies more than half their own support. (they usually do not)
Tuition paid was reported as 40,000 in Box 1 of the 1098-T. If scholarships plus the distribution totaled only 24,424 (16,000 + 8,424) then DO NOT allocate the distribution to the student loan payments, allocate the distribution to tuition.
That leaves over 15,000 tuition fees to apply for an education credit and the total student loan interest as a deduction.
You can allocate the distribution to tuition even if it was withdrawn and sent as a loan payment.
IRS Pub 970 explains more about allocating education expenses.
We might help further if we know if the student is your dependent.
If yes, you claim the credit and the loan interest
If no, she claims the credit and the loan interest
If you are unsure if you can claim her, let us know her age and if she supplies more than half her support.
IRS Pub 970
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