"It is my understanding that he will have to pay for his first year there, and then a scholarship will be available depending on how he does," Sioux City Heelan Football Coach Roger Jansen said by phone on Thursday afternoon.
Jansen thought it was a gray shirt opportunity for Malloy, meaning he would pay for his first semester and then have a chance to be on scholarship.
Malloy was charged on Aug. 8 with possession or use of drug paraphernalia, obstructing a police officer, second degree criminal trespassing, and operating a vehicle without lights. He pleaded guilty to the misdemeanor of officer obstruction. In exchange for his plea, three other counts of trespassing, possession of drug paraphernalia and driving without headlights were dismissed.
Heelan suspended Malloy for the first two games of this season. He tore his ACL in his second game back and missed the rest of the campaign.
"Rehab is going rally well," Jansen said. "They saying by the end of February or the beginning of March he should be ready to go."
Jansen said that Malloy will be visiting the University of South Dakota on Jan. 21. He holds a scholarship offer from the Coyotes.
"He really hasn't said much about what he's thinking," Jansen said. "I think he's just keeping his options open. Every indication that I've gotten from him is that he's looking to go the Iowa route."
Malloy was thought to be one of Iowa's 18 known verbal commitments for scholarships in the '12 group. With this news, the Hawkeyes drop back to 17. Coach Kirk Ferentz said the school was looking to sign around 22 players in the class.
Malloy rushed for 1,668 yards and 29 touchdowns as a junior for Heelan. Iowa told him they were considering him at running back and wide receiver.