He is right though. There are unexpected, outward costs that come with living on-campus. If this is a financial issue, there isn't much that can be done about it: you're either able to pay the enormous price of tuition and room/board, or you can't. I think it's quite noble that you are concerned about the price your parents have to pay for tuition and room/board. Don't put so much weight into the ideal college "experience." Most students realize it's overrated after their first few weeks in. Some don't care about the school aspect of college and just want to get away from home for the first time to an exotic college location. The first priority of college is education... Academics are the most important thing there. If being an off-campus student will help you focus on school, so be it.
That being said, it's a very big deal to turn down your 3-year scholarship. I think you worked too hard for it to now consider turning it down. The last thing you and the rest of the people here want is for you to regret giving it up. That could mean forfeiting both the college life you could've had and the (almost) guaranteed chance of officership. The above posts are correct: OCS selection is getting more and more competitive, and if you're not going in from enlisted, it's the least ideal method for becoming an officer (for branching, they get last picks after West Point and ROTC). It's also very hard to project what selections will be like in 4+ years. At least with the scholarship and ROTC, you can have sort of a foot-in-the-door deal, given that you pass the APFT, get contracted, and stay in the program (this is all assuming you're looking for Army, right?). I'm a commuter student, though I live in NYC so it's commonplace here for students to commute to school. Sometimes I enjoy it, sometimes I don't. Throw in ROTC and morning PT and it's usually less exciting. I value my sleep and when I have to wake up at 0330, I'm usually not happy. I spend a good portion of my time at school because I live too far to come home in between classes. Being a commuter student living at home is not bad, but there will be times when you wonder if you're missing out on something important, whether socially, academically, for pure enjoyment, or for your potential career. Building a network of not only friends, but also professors, colleagues, and acquaintances is a fundamental component to your future and career, and it's usually easier to do this when you're fully involved in school activities. And yes, you're probably missing out on a lot of "fun," whatever it may be. Be smart about this. Do not jump to conclusions. College is not like high school, if that is what concerns you. The academics are harder, there is less drama, people actually mind their own business, you have more freedom (more or less), and you have more responsibilities. Don't think you won't fit in well with your dorm-mates because of any preconception you may have about college life. Don't let yourself grow sour with regret because the way you feel now negatively affected a very big decision in your life as you go on to college. Perhaps if you're given the privilege to attend a ridiculously-priced institution tuition-free, then by all means you should just embrace the opportunity you've been given! The Army has awarded you a ridiculous amount of money to become an officer in their armed forces because they deemed you fit. This is also guaranteed full-time employment after graduation... Sort of, if you go Active. If it's really financial trouble you're facing, there are always third-party scholarship sources and FAFSA to cover the cost of room/board... Be resourceful, proactive, and use Google. If you want a non-ROTC, but still guaranteed commissioning experience upon graduation, you don't have to wait until graduation. If you're willing to go to another branch, there are always other programs like the Marine Corps' PLC, Air Force's TDSP, and the various Navy OCS programs (NUPOC, CEC, BDCP, etc). Think twice about your decision, be very careful about it, and really consider what it is you're about to throw away. That's all I have to say. Good luck and Hooah!