You rescind scholarships from your main office page.
If you are considering rescinding a scholarship for a player you did not recruit, there will be very little in the way of consequences for the first couple. If you expect to be at the same school for a bit, even rescinding a scholly on a guy you did recruit doesn't hurt too much.
Keep in mind you won't get any extra recruiting money. Also there is an extremely remote chance other players will quit as a consequence.