I hope Uncle Sam sends him a bill for his education. I know plenty of qualified high school seniors who would love to attend the service academies.
I think (I may be mistaken) that if you quit/fail after your second year, you either cough up a pretty hefty (100k+?) chunk of change, or serve as an enlisted soldier to pay off your debt.
Don't let that SOB get away with a free education. Enforce his contract and enlist him then make him do the hardest work found that gives him the least exposure to real troops.