I disagree, it should not be included in income for SS purposes. The purpose of the scholarship is clear - to subsidize, not pay for, the education. You aren't going to give credit for the tuition fees as an expense that affects ability to pay are you? Then don't expect to include what amounts to a subsidy in the SS income calculation. Frankly that sounds like a cash grab.
BTW, scholarship income does not have to included in income for tax purposes so you won't see it on line 150 of the other party's tax return.