AROTC-dad is spot on as usual. It is not just his semester tuition at risk, but also his contracting date and other benefits. He will not get his stipend or book money until he contracts, that means passing the APFT, and stipends will not be retroactive. My daughter is the master fitness trainer for her battalion this fall, and she said the freshman are going to do a practice of each section of the APFT during orientation the week before classes start, and then they will do the actual test either Monday or Wednesday of the first week of classes so everyone can get their payments started. This is not just for new scholarship awardees, but for everyone, they have to pass this year before payments start as well. As said above, each school will do it differently, but most try to get it done in the first week or so of school.