Looking to clarify understanding on 1098-T

Box 5 $10,000 scholarships, Box 2 $6,000 qualified tuition. My understanding is $4,000 is taxable. My client states that they had to repay some tuition for classes that were dropped after the refund period and I don't believe they are shown on box 3.  So if this is the case and they have proper documentation, I should be able to add that to the $6k in tuition. 

Am I correct in thinking that they would not qualify for any Education Credits as they were not out of pocket any money for the qualified tution?  

And how is the reportable portion of the scholarship reported on Lacerte?

Thank you in advance for your replies.