Why doesn't the college issue a 1099 for taxable scholarship income?

Thanks so much for some clarity.

I do not see the thread with post from MiddKidd86, can you please send me the link? As I read the worksheet on page 16, scholarships and grants WERE to be included in their support. Confused.

Meantime, we did our taxes with TurboTax, which indicated that daughter would have to file taxes for the 1098T income. So we did and only the tuition/fees were deducted, balance was entered on form 8615 and shows up in her AGI.

Concerned that if she gets that room and board support in future years, we won’t be able to claim her as dependent because her living expenses are underwritten by scholarships/grants (see what I mean about that worksheet). And also, that the school/FAFSA will view her AGI (which is all grants/scholarships generated) and give her less money.