If the student would have disclosed the vulnerability to cisco and the university authorities when he discovered it, rather than abusing the flaw for 7 months, then yes, Cisco should be hiring him.
However, stating after he was caught, that "I was going to tell Cisco about it this summer" is a cop-out. He obviously was not interested in helping Cisco produce resilient software. He SHOULD loose his ROTC scholarship. People who have so clearly demonstrated a lack of ethics and character do not belong as officers in our military, or writing code for secure infrastructure devices.

Sorry 'bout your luck Mr. Maass. I hope that you do some serious reflecting on the incident before UofP allows you a reinstatement hearing.