The question is, "does the child pay more than half her own support." If she does not, then she can be claimed as a dependent. You have to determine this for yourself based on your specific situation.
Her total support needs include tuition, room and board, medical care, travel, clothes, and entertainment.
Support she provides herself includes wages, student loans in her name (even if they are not in repayment, because they are a promise to pay) and money taken from investments to pay for living costs. Money that she spends on costs that are not her own support (such as, if she pays to support a child or boyfriend, or she invests the money) don't count as support she provides herself.
Support provided by others includes a pro-rated share of household expenses at her permanent address, plus whatever other people pay to help support her (tuition, medical, etc.). For example, if your granddaughter lives with you "full time" (even if she is temporarily away at college), and there are 3 people total in the house, her support that you provide includes 1/3 the total cost of maintaining your home (rent or mortgage, utilities, insurance, repairs and maintenance).
Scholarships are ignored in this equation, they don't count on either side of the ledger.
Note however, that if the child does not live in your home more than half the year, the rule is different. She can't be claimed if she has more than $4700 of taxable income for 2023, or $5050 for 2024. Children are usually considered to "live at home" while at college because college is considered a temporary absence. But some children may actually permanently move out and establish independent homes for themselves. So whether she is considered to live at home or live independently, determines which support and income test you use.
