If the rules were the rules, why did the school modify the requirement the entire time he was there?
They did.
They should not back bill him for the scholarship.
I can't explain that. I can state, with good faith, that the people who did this have likely terminated their military career. The military is an 'Up' or 'Out' organization. This public blunder likely means no promotions.
But, my focus is on the individual. As a Lt. in the Army; this person would be responsible for the lives and well being of 'x' enlisted men. If he can't take responsibility for his weight, for getting in good enough shape to make time; would you want him in charge of the life of your son? This is one of the most basic requirement in the Army. This was not a surprise test, and it is a test that EVERYONE has to meet .... even football players.
And Good Lord; what is it about this hero worship of football players??!? He didn't save a life, he didn't cure cancer, he catches a ball for a living; or he gets in the way of someone else. Big Deal, whoop-de-freakin-do. Other than stroking some ego; they contribute nothing. Would you make the same plead for a computer programmer, mechanical engineer, medical personnel, communications, or logistics officer? This last group has the benefit of actually SAVING lives.