I think you're still confusing things a bit ...
let's try this explanation:
forget about wrestling, with the 9.9 scholarships that can be divided any which way they want.
let's look at football. D 1 schools can hand out 85 scholarships. those scholarships can not be divided, so everyone that gets a scholarship is receiving a full ride.
to the NCAA, the costs of the scholarship don't mean a thing. they don't care if all 85 are handed out to in-state kids or out-of-state kids.
to most (not all) individual schools, that are on a budget, the cost of in-state scholarships are far less than the costs for out-of-state scholarships.
cost of living, room and board, tuition -- none of these things, or any other questions about scholarships mean a thing to the NCAA. They require the football scholarships to be full rides, which is tuition AND room & board.
now, everything I stated above holds true for wrestling scholarships, with the exception of them being full rides, and there being 85 per institution. the NCAA only allows 9.9 'ships for wrestling, and they can be divided up any way the institution elects. that said, everything else remains the same in the discussion. costs of living, room and board, tuition -- none of those are factors in how the NCAA looks at the wrestling scholarships, or for that matter how the universities look at the scholarships. If a wrestler is granted a 1/8th scholarship, then after their tuition and room & board charges are computed by the university, then 1/8th of the bill appears as scholarship credit, and the student is responsible for the rest. (They may be also getting financial aid, which would appear on the bill as a credit, but that's not a factor in this discussion; just clarifying the example.) In this example, if the kid with the 1/8th scholarship is in-state, he's costing the institution less than another kid on the team that has a 1/8th scholarship but is out-of-state, but to the NCAA there is absolutely no distinction between the 2 wrestlers -- they each have an 1/8th scholarship, and collectively they account for 1/4 of a scholarship, out of the 9.9 that the institution can hand out for wrestling.
Hope that helps.
Tom