I don't think it always results with them pulling the offer if we are talking about Iowa. It does however open their spot back up and he might not have it when he finally "decides". This happened to a DB from Oklahoma last year (name escapes me)...took some other visits close to signing day and they filled the spot; then the kid committed to Iowa and they told them they didn't have the scholly for him.
I'd fall over if Io_a pulled his offer, the only choice remaining is Minnesota, by scholarship available for him default.