I think what we're looking at is more on page 183 (as far as how it counts towards athletic scholarship limits).
There are three sections about it...
15.5.1.2 essentially says that a kid can be given financial aid that is not based on athletic ability, and he will not count against a roster limit until he actually participates in a varsity sport. (this is more for schools that still have JV teams I suppose?).
15.5.1.1 applies only if you were enrolled prior to some date in 2005.
15.5.2.2 says that a kid who is awarded financial aid based solely on his academic qualifications can participate without counting towards a roster limit, but only after completing one academic year of full-time enrollment and has achieved a grade point average of 3.3.
So it looks like if a freshman comes in and plays (varsity) he'll count towards the limit. But after his first full year, if he has a 3.3, he can continue to receive academic financial aid and not count toward scholarship limits.
Interesting. I guess that's how they take the subjectivity out of it. You can start him off on academic scholarship, but he still counts towards an athletic scholarship for the first year. If the kid has a 3.3 after the first year (thereby proving his academic worthiness?), you can stop counting him against your athletic scholarship limit.
But I'm guessing this applies only to those who can qualify for an academic scholarship to begin with...not just any ole player who happens to have a 3.3 after his first year.