For loans opened during the same tax year, the system uses the end-of-month balance from the same month when the account was opened for the beginning balance reported on form 1098. Since the loan was opened in February but not disbursed during February, that EOM balance will be 0.00, which is what will appear on the 1098 form for that tax year.
Remember that CU*BASE does retain balances for every loan for every day of the year, which is why we must use a balance from the end-of-month snapshot. See the related link below to learn more about this process.