*Qualified education expenses. For purposes of tax-free scholarships and fellowship grants, these are expenses
for:
-Tuition and fees required to enroll at or attend an eligible educational institution; and
-Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction.*
Clear answers are here:
https://www.irs.gov/pub/irs-pdf/p970.pdf
Chapter 1 covers scholarships.