That's why scholarships are given on a year by year basis Sam, they are not 4 year contracts. The coach can choose not to renew it the next year. I'm not going to spend time reading the bylaw, but I am guessing that it makes it so they can't give an injured players scholarship to someone else mid-year.
There are many documented cases of players losing their scholarship due to inability to play the following seasons (for medical issues), although when coaches don't honor it, they are usually publicly chastised for such a move.
There are many documented cases of players losing their scholarship due to inability to play the following seasons (for medical issues), although when coaches don't honor it, they are usually publicly chastised for such a move.