@TaxGuyBill  Sounds like you must have had that question before.  I'm glad it was you and not I.  So, not to change the subject, but can I change the subject?  What would you do with this:

Schoolteacher pays $10,000 tuition to university (working on a masters degree, paying with a student loan, hoping to eventually have it canceled but who knows).  

University gives teacher a $3,000 "tuition waiver" for mentoring a student teacher in her class.  The $3,000 can be applied only to tuition.  If no enrollment in classes, no cash payment.  

University issues a 1098-T for $10,000, and a 1099-NEC for $3,000.  

(I'm not sure if $10,000 was the gross tuition amount, or net after the $3,000, but it doesn't make any difference for Lifetime Learning Credit.)

Teacher is in a 12% bracket so reporting the $3,000 as "other income" might avoid CP-2000 wanting tax plus SE tax on it.