I've had experience with both inherently intrinsically motivated students and extrinsically motivated students. I try to encourage the reward one feels from the learning itself but I do understand that grades may take over for some students. Nonetheless, I still try to encourage the benefits from the learning process. Collaboration within student groups has been shown to have resulted in intrinsic motivation (Rhee, Parent, & Basu, 2013).
Reference
Rhee J(1), Parent D, Basu A. (2013). The influence of personality and ability on undergraduate teamwork and team performance.
Springerplus. 2(1):16. Epub 2013 Jan 19.