They're not losing a scholarship. Don't look at it as a punishment. It's accountability. We all know not all student athletes come from a good academic background. If those guys aren't monitored throughout the semester, end up being academically ineligible, and get kicked out of school, that's a disservice to them. If they're slapped on the wrist midsemester and it keeps them on track, they get to keep their scholarship and keep working toward a valuable degree. Is it better to miss a game or lose your scholarship?
Lot's of coaches have different rules. I've heard a lot them have had rules that their guys have to sit in the first two rows of all of their classes.
I knew a guy that played football at Hobart that was thankful for all of it. He wasn't a good student in high school, but he said all of the rules and structure he had taught him how to be a good student and helped him get a degree.
Edit: I didn't address the guy on academic scholarship. They have their own set of rules that are different than the student athlete. They have to maintain a higher GPA to keep their scholarship than athletes who only have to remain in good standing.