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Specifically D1 and D2 use the same LOI, and all D1/D2 schools which participate in the LOI program agree to abide by the terms of the LOI. So a player would have to get a release.

A LOI to a JC does not require a release (either way) because the NCAA and the various JC sanctioning bodies have no cross-agreements.

Of course there is no LOI for D3 (no athletic money).
You need to be careful, I know many local players that had chances to be starters at D2 schools but opted instead to D1 because of the pride only to become foul ball chasers and eventually cut from the team down the road. Just heard of a junior pitcher (HS superstar) at the local D1 who threw a total of 21 innings in 3 years and now got cut. Had he gone the D2 route would have been a weekend starter. But back to your question, not too many coaches will release a player from a NLI. Only option left after signing a NCAA NLI is JUCO or NAIA.
Possibly the most difficult decision for a player is what level to play. That goes from the high level DI who may want to go professional, down to JUCO and DIII. It's a complex decision, and as TRHit says, it has conseqences.

There are certainly players who walk on and become DI starters, but many more sign and do not have good endings.

The key is to get sound, neutral advice, but the ultimate decision is the player's.

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