My daughter looked at several schools with top competitive scholarships offered to a select few. We read the invitation and information carefully, and I believe several schools stated that students would be notified of awards by XX date, and would have until YY date to accept or decline the award.
Again, it is the school’s money, and they are using that money to guarantee top students with top stats for their incoming freshman class. Very different from “regular” merit aid that can be doled out just based on stats alone, the school has invested time, energy and money to interview students and pick the ones they most want at their school.
It seems scary to decline a top award, but holding out until a better offer comes along keeps someone on a waiting list for that award from having that opportunity.