Are international students (F-1) allowed to get the Federal refund ($1000) from their 1098-T?

[AmyC]

Maybe.  If you used dollars that have been taxed and meet the other qualifications.

The IRS states:

Expenses Cannot Be Paid with Tax-Free Funds

You cannot claim a credit for education expenses paid with tax-free funds. You must reduce the amount of expenses paid with tax-free grants, scholarships and fellowships and other tax-free education help.