Greetings GaryGott:
Hundreds of schools worldwide qualify, but not every foreign school - nor domestic, for that matter - is considered a qualified institution. The school needs to be eligible for Title IV federal student aid. You can check if your grandson's school qualifies here: http://www.savingforcollege.com/eligible_institutions/.
Note that there are a few schools that may qualify that are not on the list, so ultimately you need to check with the school to make sure.
Good luck!
Brian