Question: If Cael was recruiting 2 similar wrestlers and one was in-state and one was out of state, does he benefit offering the in-state kid the spot because of tuition? I don't know the scholarship guidelines.
I don't believe it has any impact for CS. It may be an impact for the families of the respective wrestlers.
My understanding is that PSU wrestling is fully funded for the 9.9 wrestling scholarships that are permitted by the NCAA. That means that PSU Athletics has committed that it will spend the funds for these scholarships. That may not seem like a big deal, but a lot of colleges do not fully fund all the scholarships that each of their teams have the option to hand out, per the NCAA.
Wrestling scholarships can be sliced and diced (i.e., unlike football scholarships, they are not full scholarships). So with 10 starters, and only 9.9 scholarships, and prospects spread out over 4/5 years, it's very rare that any wrestler receives a full athletic scholarship, as that really limits scholarships/money available for the rest of the team.
So if PSU offers a PA wrestler, and an out-of-state wrestler, each a half scholarship, from a NCAA perspective that means that each would receive 0.5 of the total 9.9 scholarships. In terms of PSU's costs, a half scholarship to a PA resident is cheaper than is a half scholarship to a non-PA resident, as PSU has different tuition rates for in-state and out-of-state students.
Since PSU wrestling is fully funded for 9.9 scholarship, PSU can afford the half scholarship to either (or both) of the kids in above example. Using standard costs, PSU charges $17,900 in tuition and fees for PA residents, and $32,382 in tuition and fees for non-PA residents. So the half scholarship to a PA resident would be around $9,000, and a half scholarship to a non-PA resident would be around $16,000. (For discussion purposes, I'm just rounding off numbers.) So the family of the PA-resident student would have to come up with $9,000 plus the cost of room and board (the tuition fees do not include R&B), while the non-PA-resident student would have to come up with $16,000 plus the cost of room and board. (And most wrestlers go to school year-round, so the R&B costs are higher for them than for the average student.)
Wrestlers can also receive financial aid, as long as what they receive is available to all other students (i.e., they don't get special treatment for financial aid). As such, the actual costs to the two families in this example may be less than indicated in the previous paragraph, depending on their financial condition, how many other kids they have in college at the same time, etc.
So to summarize, it makes no difference to CS which kid to offer, as PSU athletics will pay the bill regardless of which one is offered. However, it may make a difference to the family of the respective kids.
I hope that helps/is what you were seeking.