Stating I will receive a $7000 grant from government that I don't have to pay back

There is nothing to research.  This is a scam out and out.  You never pay upfront for a grant.  It is not income, therefore not taxable.  The government does not cold call people and "give" them grants out of the blue.  A simple web search of "grant scams" will not bring up 5000 links but with the first 5 you will find out your answers.  If your grandson needs money for college, he should be applying at https://fafsa.ed.gov/   which is the official Dept. of Education web site.  The bigger problem is that you foolishly have just posted your phone number and e mail address on this web site and it will be harvested by scammers and now you will receive tons more phone calls.  So for that reason I have asked for a mod to remove it for your safety.

Grant scams:

The government does not call people up and offer them free money because you paid your taxes on time, have never been arrested, have paid all your bills, or whatever excuse they can make up.  In order to get a grant you need a valid reason (not one of the above and not just because you need money), you have to fill out tons and tons of paperwork, wait a long time, and might not even get the grant in the end.

http://www.grants.gov/web/grants/learn-grants/grant-fraud.html
http://www.consumer.ftc.gov/articles/0113-government-grant-scams

I called this number after I was told to so that I can "win" my $7000 grant. This lady answered me and told me to buy a $250 iTunes card at a local convenience store. What a joke. I played along with her (I didn't buy anything) and when I had to tell her the code on the "card", I made some letters up and told her to go f**k herself because I knew it was a scam. She said that I'm stupid and hung up on me. They're just SCAMMERS from Europe, India, or wherever that want to take your money. DON'T FALL FOR IT. Needless to say, their customer service is great telling me to go f**k myself. :)