This is a really tricky subject and good points above about needing various instruments or voices, etc. But consider:
Many music schools award scholarships that are “need-based” or “need-informed.” It could be that a student with fantastic talent is from a family with less or no financial need, which translates into a lower merit scholarship than another similarly talented student may have received. Eastman has a chart describing scholarship ranges across various categories of need and merit and it’s worth looking at to better understand the process. Don’t confuse scholarship awarded with talent level - it’s only part of the overall picture. I know we all feel very broke as parents of musicians. ?
https://www.esm.rochester.edu/financialaid/cost-of-attendance-undergraduate/