The grandfather told him that RIT would consider him for a scholarship in his second year if the first went well. RIT is a Division III school and cannot offer athletic scholarships.
Even though RIT is a division III school, they can offer scholarships to their athletes through the means of academic, need-based, and extra-curricular involvement. Predominantly through donations and grant money from alumni or the government, especially for the deaf or hard of hearing students.
When Matt and Michelle are getting food at the drive-thru, a shot of an Ohio Bicentennial license plate is shown on the car behind them. The movie was set in the 90s and Ohio's bicentennial was not until 2003.