Every player has to decide what's most important if he comes face to face with this situation. If you're being cut loose, pro ball is most likely not in your future. How much money do you want to give up just to TRY to play (with no guarantees) somewhere else? And what if your current school's diploma would be more valued as you begin your post-baseball career search? What if not all your credits will transfer, so that you have to do an extra semester or more?
We're not talking about MLB free agents here. For 95% or more of college players, when baseball stops helping to improve your overall situation, it's time to move on from the attitude that baseball controls all your life decisions. Even the time to hang 'em up completely comes for everyone at some point. For a college player, it's coming soon anyway. A player in his 20's is a grown man and needs to make mature decisions.