The not-so-easy answer depends on this: Would the parents qualify for the American Opportunity Credit if there was tuition paid?  If so, do the scholarships/grants allow that money to be spent on non-tuition expenses (most do, including Pell grants)?

*IF* both of the above are "yes", then you probably want to enter $17,000-$19,000 (an extra $2000-$4000) on the child's return, and $2000-$4000 of tuition on the parents' return.