Tax Question

[msdznyduck]

DS is 18 and a freshman in college. He had a part time job this past year and earned about $4000. He took out student loans to pay for college. In Nov. he got a refund check for about $1200 from the college.......took a loan out for too much, is what we figure. We put the money in a short term CD to accumulate interest, since his loans are not due for about 5 years, and he won't be making payments on them til he graduates. He got a for 1098-T with amounts billed ...Box 2 (fall semester I think, since it is roughly half of tuition/room and board for the year) and in box 10 was the reimbursement amount of $1200.

Does he report this as income? and pay taxes on it?
I have tried going to irs.gov and can't get any info.
thanks