hjford,
I understand you think it is cheap, but honestly from an IS tuition perspective it is equivalent to a private or OOS. Tuition is only 1/2, add in R &B, I am betting you are in the high 30's per yr. IS tuition, at least in MD, VA, and NC runs half that for a yr. IS for tuition, and R & B is under 20K. You need to question where you are going to come up with R & B even if you got the scholarship..it could be 18-20K per yr. Trust me, it will also go up every yr too. DS1(OOS) entered at 28K, graduated and it was 41K . DD (IS) entered and it was 15, it is now 20, 2 yrs later. Expect 10-15% increase per yr. FAFSA in 6 yrs has not increased, it is still 5500, which it was back in 07. Merit packages from colleges typically come in bulk sum, divided over 4 yrs. They don't up the ante because costs are increased.
You don't even know if you will like ROTC. I don't know ROTC commission rate, but it is something I would ask the unit. If 100 cadets enter as an MSI, but only 40 commission, than you need to ask financially what will you do if you are one of the 60.
I say this with kindness, they aren't asking for an IS on your list for grins and giggles, they have a budget to live within regarding scholarships.
I agree with Marist, a 26 ACT is low as an OOS for Ohio and Michigan. I don't know if you realize most state schools will act like a private for OOS residents. VA has a regulation that all public universities can accept no more than 25% from OOS. NC and MD also have those regs, but I believe it is 30%. When you have a school like those two which are nationally known, you have to expect a high level of OOS applicants.
At this point all you can do is make sure plan A, B and C are in place.