Definitely scholarships, although Ciro doesn't say that, only agrees with a quiet nod. Even with all the help that the school provides, people still are only able to attend it through certain conditions such as keeping their grades above an acceptable level. There's no "being held back a year" in a place like their school. It's this or you're done.

Being reminded of passing out as him flush in embarrassment, and he buys himself a little time by eating more of the soup. "I normally don't, and only meant to lay down for a moment after everything that's happened today.... But I didn't get enough sleep last night. I suppose that did me in."