Just do what the IRS Notice says: Provide proof the that college was actually paid that amount (payments include loans). Ask your college for a financial printout of your account, and that will show all payments that the college received (including loans).
Once you do that, it should straighten things out (assuming the college was actually paid).
You received the notice because your college was dumb enough to use Box 2, rather than Box 1 of the 1098-T.
