As you of course recall, athletes on scholarship had to live in the dorms back when we were there.
But then there was the reality. The room was paid for, so . . .
Put it this way - I never once saw Billy Paterno in Dillon Hall in the year and a half when our "tenures" overlapped, and for a year I was one section over from his "room" on the third floor.
That's not to say most of the athletes did really live in the dorms as juniors and seniors, mind you, because they did. But there were some who basically kept the rooms as a mailing address, which was nice for the roommates who actually did live in the rooms. It was in the tradition of George Gipp (and maybe Paul Hornung too?), so why not?
I'd be very surprised if this new thing changes anything at all for today's players.