WB, that aspect is actually something that was reported here multiple times before, so I have relied upon those reports.
I actually previously inquired as to whether it was just internal budgeting -- i.e., a way to make the football and basketball teams appear less expensive on paper -- and was assured not. In fact I think the published debates on the bill in the legislature indicated that, in the current tight budget times, one of the objections to the current law was that it essentially used NC taxpayer money to benefit non-NC students.
Perhaps someone here who has a son active on a typical partial ride at an NC school can clarify.
I'll also ask someone else I know who should be able to set me straight. If I've been misinformed on this, I do want to get it right -- as opposed to contributing to the spread of the erronneous info.