95% of all problems associated with the 1099Q can be avoided if the school gets the money directly and the student gets taxed.  In those instances, it is one less layer of bureaucracy to deal with, as it is then usually the parents and the students, instead of the parents who claim the credit, the student who has the 1098T and the grandparents who end up with the Q and may be in another state from the parents and the student.