I have a full squad. There is a recruit that is pretty clearly better than my lowest rated freshman.

What is the downside to rescinding the scholarship and signing the new player? Will it have an adverse effect on the rest of my team or maybe just impact future recruiting?

Even if you recruited the freshmen that you’re going to cut, there is no significant (negative) effect of cutting him. I’m about to cut a player today that I recruited. If you cut 3,4,5+ players in a single season maybe there is a downside, not sure. And maybe it temporarily affects your chances of landing a higher division coach job. But other than that, nothing to be concerned about.

thank you for your input

I haven't done it much but have seen no downside so far. Two seasons in a row I rescinded a player I recruited, my reputation and loyalty stayed at A+. I would have done it three consecutive seasons but recruiting didn't go my way so I kept the guy; I'm curious what the result would have been.