I won't speak for NROTC, but for AFROTC it goes back into the pot, and not offered.
ROTC has a historical number in their vault that they use regarding % awarded, and % activated in the fall.
2-3 yrs ago, AFROTC used that number, but because AFROTC scholarship board does not talk to the AFA, it became an issue. AFA announced late into the apptmt cycle that they were severely cutting the apptmts. That meant more of the scholarship recipients were activating the scholarship. Due to that fact they cancelled IS (NROTC college programmer equivalent) scholarships for a yr. They had used up all of their money for that commissioning yr group.
The following yr., knowing that AFA would reduce class size, they also took a new approach so they wouldn't be in trouble for IS.
If I recall correctly last yr., posters have stated that AROTC has their own twist because they talk to USMA regarding candidates. I won't swear by it, but if the USMA and AROTC candidate does not get an appointment, they will revisit their package.
~~~ No 1000 lashes with a wet lomein noodle, I just recall that was a topic in the spring.
As for your DS getting the BFE, and holding onto the scholarship it is always a hot topic button.
~~~ Some feel it is selfish because other deserving candidates won't get the scholarship
~~~ Some feel that if the candidate was deserving that holding onto it would not stop AROTC from offering them a scholarship in the 1st place.
JMPO, but I would hold onto it until I-Day. I have known some that hold onto it until Aug., because the fact is 5% will not make it through BCT.
Kids are kids, and many of these candidates play spring sports. Break a leg at the last tennis match or baseball game in the end of May, they will become a medical turnback.
My best advice to any poster that is opting ROTC as plan B, accept the scholarship and pay the deposit for the college. 300-500 bucks for a deposit is worth your sanity.