Class of 2024 National Merit Discussion

Pulling over from a discussion on the 2023 thread by @zenmaster0, can we discuss the first choice instructions:

NMSC will not process any college change requests for a Finalist once a college-sponsored Merit Scholarship offer has been posted to their OSA dashboard. The change in college choice will not be reported to the newly selected college and the Finalist cannot be offered another college-sponsored award from NMSC. This applies even if the new college choice also sponsors Merit Scholarship awards. Finalists who
are uncertain of their current college choice may change it to “undecided” to prevent an offer for a school they may not attend. Such notification must be submitted online at osa.nationalmerit.org before May 1. Finalists can subsequently report a firm college choice no later than May 31.

Does “a college-sponsored Merit Scholarship” in this context refer to a small merit award by a college and not the big half-tuition from USC/potential 20k-ish from BU/NEU? This is confusing to me.

Scenario: suppose the NMF puts BU as first choice on March 1, subsequently is admitted RD to both BU and USC, and BU posts a college-sponsored award to the student’s OSA dashboard, the student cannot then change first choice to USC? I’m pretty sure I’m misunderstanding something here.

Or, does the student put BU on March 1, and change that to undecided some time after March 1 but before BU posts a college-sponsored NM scholarship to the student’s OPA dashboard?