Nuke83, this athlete would be able to participate in all Fall 2016 practices and intra-squad scrimmages. The only thing he wouldn't be able to do next Fall is to participate in any games or scrimmages that the school might schedule against other teams in the Fall.
tlbaseball, in situations where an athlete's scholarship is not renewed for the following year, the school does have to provide a hearing opportunity where the athlete can appeal the non-renewal of the scholarship (before a committee of campus faculty and staff who are from outside the athletic department). In reality, that may not be that helpful, as the athlete may want to transfer out at mid-year so he can be eligible at another Division I program in the Spring of 2017, but just wanted to clarify that an appeal opportunity is required.