The IRS sent me a letter saying i didnt pay for school in 2016, sent them copies of receipt for my school that i paid out of pocket but theyre still saying I owe $1500??

not every school is qualified for the AOC or LLC.   those that are were supposed to send a 1098-T.  if you had parents that could claim you as a dependent they are the ones who could claim the credit not you.  

the IRS probably wants the 1098-T and copies of any other documents specified in the notice.