My school reported wrong information on my 1098-T and will not issue a new form. Can I use the actual values as reported in my student account instead?

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 2. You will then be able to enter the actual amounts paid. 

Your entry should include the $3500 you paid plus what the grants paid