Claim the full $1,700 on your current year's return to help ensure your records match what the IRS received on the 1098-T. When you get the $1,400 reimbursement, report it as income on your 2025 tax return.
This will help ensure you can claim the education credit in the current year and account for the reimbursement when you receive it.
For more details, you can refer to the IRS guidelines on Form 1098-T and TurboTax's guide to Form 1098-T.