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I edited my original post to include partial scholarships by NDoggie78
The NCAA says the average scholarships per team is 24, but I still don't see a problem using your numbers. I don't know the actual numbers on students and beds available, but we have built 4 new dorms in the last 4 years and are currently using an "extra" dorm to rotate students as their older dorms are remodeled. I believe there has got to be room for 15-20 additional students. It would seem that current enrollment probably fluctuates by that amount each year anyway.
You would know better on the numbers, but I just don't think anyone needs to be "cut"
How does Stanford do it? They have 36 varsity sports compared to Notre Dame's 26.