If you live on campus, the Room and Board will pay for whatever your charges are up to $10,000. So you can chose the most expensive dorm and the biggest meal plan. If the total is $8,700 then that's what they pay. If the total is $10,100 then they pay $10,000 and you pay $100.
If you live off campus they will determine the average of what rent would be and give you that. If you don't take a food plan at school, then they average between the cheapest and the most expensive meal plan and give you that.
My son actually got more money when he lived on campus his first semester and had a meal plan than living off campus.
The money gets deposited directly into his checking account each semester.
I will warn you so you are prepared, using the scholarship this way will not pay right away. For the Fall semester, you will get the money anywhere from end of November through mid December. (At least that's how it's been the last 3 years for my son's school and 2 of his friends schools.) For the Spring semester the payment is quicker and seems to hit the accounts around mid to end February. It's been around 2/22.