This is not true. 4-year and 3-year military scholarships are a completely separate thing. While there are a lot more 4-year scholarships available, 3-year are very limited in number. People that get waitlisted after applying for the 4-year scholarships will be given the priority for the 3-year scholarship in the following year. How many ever left after giving out to those from the previous cycle will be given to those that specifically applied for 3-year scholarships.