The student will get the $12000 standard deduction and the parents will be able to claim a $500 credit for the college student dependent. $12000 would have been enough to cover my daughter’s scholarships, but when her standard deduction was ~$6400, she was paying taxes on about half of her income/scholarships. So that’s one new benefit.
It would certainly be nice not to deal with the kiddie tax but it’s a long way to prove independence unless the full scholarship student has a pretty good paying job.