Can I deduct $2500? It doesn't cost $58,000 to go to Friends University. $38,000 maybe and I pay around $8000 and the remainder is scholarships and student loans ($3700).

Yes, but not exactly.  

First the American Opportunity tax credit (AOTC) is a tax credit not a deduction.  $2500 is the maximum amount.  If you paid a least $8000, you will get the maximum amount, if you otherwise qualify.  Only $1000 is "refundable". That is, you only get $1000 (max) once your tax liability has been reduced to 0.

Furthermore, There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

Tuition, fees, books and other qualified expenses paid by loans (not scholarships) are  counted as paid by you when calculating the AOTC

See https://www.irs.gov/Individuals/AOTC