I don’t think that is correct. A scholarship that is more than QEE is unearned income: https://www.thetaxadviser.com/issues/2016/apr/kiddie-tax-may-be-due-on-college-scholarships.html
And “For 2018, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or the sum of $350 and the individual’s earned income.”
https://www.google.com/amp/s/www.forbes.com/sites/kellyphillipserb/2018/03/07/new-irs-announces-2018-tax-rates-standard-deductions-exemption-amounts-and-more/amp/
So if a dependent student has some earnings (more than $700) they will pay tax at trust rates on anything over $350 of non-QEE scholarships (or interest on savings etc). I think it becomes quite important for them to not be a dependent in those circumstances (assuming the parent isn’t eligible for college related tax credits).