I think you're partially right as it pertains to career ending injuries, returning aftet pursuing careers, etc...thats referred to as the Lifetime Degree Guarantee. When you return you have an academic scholarship in essence.
It's also meant to protect current players from having scholarships pulled for playing performance, illness, team contribution, etc... and that's the Four Year Scholarship Commitment. It actually states that no Athletic Scholarship will be reduced for the reasons stated. I interpret that to mean an athletic scholarship remains an athletic scholarship until the current player decides otherwise or has earned his degree, which also takes up a roster spot.