<p>"Don’t sabotage his scholarship - it will only reflect poorly on your friend. The word “malice” comes to mind. Karma will do its thing, just wait and watch, the bully will go down in flames, it just may take some time to play out. "</p>
<p>And what if it doesn’t do its thing? The bully having a scholarship makes no difference in whether to report the bully or not; they don’t deserve the scholarship if they’re intentionally picking on someone with disabilities. It seems that the bully isn’t stopping as the OP mentioned, so I would still report him immediately.</p>