Some schools only require a minimum of GPAs to keep the merit. I’ve seen req’ts as low as 2.0, 2.3, and 2.5. I imagine the schools with “merit for everyone” are more likely to have EZ terms to keep the merit. These are schools that need warm bodies for all years, not just frosh.
At schools with higher GPA req’ts, you will see some kids lose their merit and have to leave. you’ll also see some kids change to much easier majors.