@oneundecided Check again closely. Because it will be NOT be reported in twice. As I interpret, if the student deposited the check with Bursar office then it will be on 1098-T and if the student directly deposited in bank then it will be 1090-Misc.
Not a tax advice but here is my take on it. Typically students are considered ‘temporary absence’ and hence their state is where ever the parent live is their home state. If the student qualifies for ‘who must file return’ criteria’s then they need to file. Chances are they need to file. So either they can file for themselves or parents can file as part of their tax return. But it is better to file individual since if the net student income is above kiddie tax limit, then more tax need to be paid. So better option is to file themselves and the tax will be lesser. But irrespective of how you file for student, the exemption for the child can be claimed only by parent in their return (if provided > 50% of support for student).