how do report a 1099-NEC for completing college classes?

My local County Office of Education has a program where they give you a stipend for completing college classes towards an education degree. They also give a lump sum when you complete an associates or bachelors degree. 
This money goes to me not to my college so they sent me a 1099-NEC. 
I'm a full time student living at home (dependent) and seem to owe a lot of taxes on this both Federal and State.
I'm trying to work out if I've entered this correctly. I don't work for them. I submit an application, send in my grades and they send me a check.