"wouldn’t those two students also have a $4000/each need for personal expenses just like the 100% scholarship student? "
The COA stipend is part of the scholarship and is subject to the NCAA limit.
And they’d have a much bigger unmet need for the 50% of tuition room board books that is not covered. But that doesn’t get met because they have a 50% schollie rather than 100%.
Let’s say a team has 10 schollies that today are each worth $50k. $500k total. COA increases each of those to $55k. That’s the limit – $550k.
If, in your example, you give out 20 50% schollies for TRBB. But then you give each 20 kids the full $5k COA stipend. That’s $600k total. Which is more like 11 schollies and over your $550k limit. Can’t do that.