My DS is a 3 year ROTC scholarship at Norwich. The way his works is that all Freshmen and Sophomores in the Corps are required to be in a "non-binding" ROTC program, unless on a 4+ year ROTC scholarship. Then you contract freshmen year.
So as a 3 year, he just completed his freshman year, and will contract this Oct. as a sophomore. So for him, there was no binding aspect to his first year. He had to make sure his grades passed above a 2.5, received at 3.0+ on his Mil Science courses, recommendation from the AROTC officer in charge, and pass the PT. (I think there was a Field Training Exercise (FTX) component associated as well.) So freshman year was a really a "prove to me before contracting" scenario. ROTC is not contributing anything to his freshmen year nor does he receive a stipend yet until contracting. So if never contracted, or dropped it, there is no penalty.