hey guys, so i realize this is probably a stupid question, but i couldnt find it in the player guide.

What does rescinding a scholarship mean? what are the effects?

Boots the player off your team. Frees up a spot in your recruiting class (but doesn't give you extra cash. If you don't fill the spot and take a walkon, you'll get the cash next year when the walkon leaves). If it's a player you recruited, it might damage your reputation slightly. This hasn't happened to me, but I get the impression that if you boot too many players, their friends might voluntarily transfer out. 

For every player you recruited that you cut, you're reputation drops 2/3 of a letter grade (A+ to A-).  For every 2 players recruited by someone else that you cut, you drop 1/3 of a letter grade (A+ to A).  Takes 2 seasons for your reputation to be restored, and reputation affects moving up to D2 and D1.