Every year the question comes up about listing other schools where one is applying. Most music schools ask the question. I don’t think there’s any issue with replying honestly, nor will it affect the scholarships.
Past threads:
http://talk.collegeconfidential.com/music-major/1419823-listing-names-of-other-colleges-you-are-applying-to.html
http://talk.collegeconfidential.com/music-major/579949-listing-what-schools-you-also-applying.html