Q. Can a college student on scholarship be considered a dependent if the scholarship is paying for more than half of his living expenses?
A. Yes
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student. Note that the support requirement is not whether your parent provided more than half your support; it's that you didn't provide more than half your support.
He lived with the parent (including temporary absences such as away at school) for more than half the year