Employer's are allowed to give employees up to $5250 of tuition assistance/reimbursement tax free. This is not applicable in your case, because you are not actually an employee of the university.
As the other answer said, because it's on a 1099-Misc, it's taxable. It is not wages or self employment, so you do not pay social security and medicare tax, on it.
Scholarships should not be reported on a 1099-Misc. TurboTax aggressively steers you to self employment, because so many 1099-misc are really that.
1099-Misc income (I assume the $ are box 3) is usually reported on line 8 of Schedule 1, as "other income". It is treated as unearned income.
Enter at the 1099-Misc screen
On the next screen Describe what the payment was for
On the next screen select "none of these apply"
On the next screen select "No it didn't involve work like my main job"
On the next screen select "I got it in 2020" ONLY
On the next screen select No, it didn't involve intent to earn money
TT will put the amount on line 8 of Schedule 1 as other income
Because your tuition has effectively been paid with your after tax money, you may count that amount for claiming the Lifetime Learning Credit.
