Parent of a student getting ready for college (Coverdell question)

I am a parent of a student getting ready to go off to college. Orientation weekend is coming up where they will register, pay tution/housing/meal plan/fees. They will receive a scolarship from the university that will cover about a third of the semester cost, with the remaining costs to be paid for by the family from a Coverdell.

As I understand it, the student is the benificiary of the Coverdell but I am still the Custodian. We plan to pay for the outstanding tuition/fees from our checking or credit card with reimbursement from the Coverdell. As I understand it, the distribution will be in the student's name on the 1099, we just have to demonstrate that it was for qualified college expenses when filing taxes.

Does this sound right so far?

I saw something somewhere about adjusted qualified education expenses - any wisdom on how that works?