That is totally not true as far as an athlete getting hurt and losing their scholarship. Probably every division 1 & 2 university will have an athlete who suffers a season ending injury. They do not lose their athletic scholarship if they get hurt!
If the injury occurs during the season covered by the athlete's contract, your athletic award will be guaranteed. However, if you are not capable of playing when the next player agreement is signed, you will likely have the athletic scholarship money pulled.
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