I have a firm policy against cutting seniors. After his senior season, he'll leave and you get $3k. If you cut him and fill both open roster spots, then you won't get that $3k for 4 more seasons. On top which, you will have to stretch your budget to try to sign 2 for 1. The players you sign are likely to be marginally worse than if you didn't do that.
If you think about it over a 4 season period, you will actually be reducing your budget during that time! Why would you choose to do that? [Of course, this matters a LOT more at D1, than D3.]