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I know a couple kids on full ROTC scholarship. First year, and then you drop out, no problem, you don’t have to pay it back. But if you go beyond the first year, and then drop out, you are liable for the tuition. At least that’s what they told me when I inquired how the scholarship works. I might add that a full ROTC scholarship includes room, board, tuition, books, and a stipend.

I’m pretty sure that the standard ROTC contract states that if the student cannot/does not join the military, then all tuition moneys have to be repaid.

Positive. My son went through it, and he became active his junior year. Some go through it, and never officially commit. They are responsible for payment after the first to years.

Many years ago, something somewhat similar to this happened to me. Only it was Army ROTC, not Navy. I also went to a much cheaper school and was heading for graduation in the Carter era when the military was downsizing big time, so there was no demand to repay tuition. I do not remember the details of the contract, but it basically said I had to serve when and where called at the Army's option after graduation. Nonetheless, the Army retained the right to reject any ROTC cadet at anytime for any reason or even no reason and was not obligated to share the particulars.

I think the Navy is way out of line here. Asthma is a fairly common ailment and fairly easy to control with medication. While you don't want to put a person on a submarine or a ship likely to be in combat who is prone to asthma, there are about 3-4 rear echelon jobs in the army for every front-line job and, I would guess, an even higher ratio in the navy.

Therefore, I don't see how this is any different from any other contract-- the young lady is apparently quite willing to serve, the navy is just unwilling to make minimal accomodations to exclude her from the 20% or assignments where an asthma condition would be a genuine impediment. That's the Navy's choice, not hers and she shouldn't have to pay for something she can't control.

"...if the student cannot/does not join the military, then all tuition moneys have to be repaid. ..."

I used to work with a guy who received over $300 a month - for life - because he fainted during a induction physical. (Like this lady, he was never sworn into any branch of armed forces)

If the termination was for medical reasons, that arose after her signing a contract, if she had performed in good faith and as reasonably requested, and there is nothing in the contract that clearly states that any failure to complete will result in repayment; there is someone out there who can get her home free and maybe with a nest egg.

Even if it states that repayment is due (immediately) if the student gets sick - particularly as a result of the training required by the USN - even the government would be hard pressed to enforce such a clearly discriminatory contract.

Having had to deal with the VA as well as the government in general, I've got to believe that this is a case of bureaucracy doing what it does best by screwing up an interpretation of policy to the detriment of the individual.

I’m pretty sure that the standard ROTC contract states that if the student cannot/does not join the military, then all tuition moneys have to be repaid.

Indeed, but the contract says if YOU back out of the deal, then you must repay. Recall that is was the Navy that backed out of the contract. That is very different.