NLI Signing Day 2017 In regards to the how-the-grants-work question, my understanding from having gone through the Financial Aid process recently is that the University gets from the federal government an 'Expected Family Contribution,' a number that indicates how much you're able to pay based on your tax returns. It's up to the university to subtract that number from cost of attendance and give you the rest of the amount, but it frequently doesn't go all the way, hence loans.
What I'm guessing they're doing is calculating the football recruits' EFCs, determining what grant they would get if they were a normal student, then applying a partial athletic scholarship to perfectly cover the remaining difference until the football player is only on the hook for the EFC, which can be close to zero. If the scholarship goes above that difference then it has to start cutting into the grant instead of the EFC.
From the
UC Davis Scholarships website:
All UC Davis and outside agency/private scholarships are posted to the recipient’s UC Davis student account. When credited, the scholarship will first cover any unmet need; then, it will replace a student’s Self-Help expectation, followed by loans and Work Study. Grants and other gift aid will be reduced last, if necessary. Scholarships will be divided and disbursed evenly over fall, winter, and spring quarters, unless otherwise specified by the scholarship terms.
So it looks like they're treating an athletic scholarship as they would any other merit scholarship. Smart, but also kind of violates the spirit of the rules, which is to stop rich schools from crushing smaller schools -- I can't imagine Weber State or Northern Colorado have as robust need-based programs as UCD does, so this kind of adaptability might be more difficult for them.