Just a note that everyone's initiation is different in terms of complexity. Doing a second initiation can range from "no biggie" to "need dispensation from Pope." So definitely talk to your NME ASAP and find out what your options are.
ps: I do agree with OP that it sounds like the funding person for the scholarship is being a dick, but you really can't argue with them if you don't want to lose it.
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It is all 33girl's fault. ~DrPhil