Cheating in a medical exam can get an unqualified person licensed as a doctor. It can have serious consequences and kill lots of people. In a regular college exam I think criminal charges are a bit much but for a public safety related exam like doctor, pilot, etc. I think it's appropriate.
Adults are adults. 18 year-olds who defraud the military face punishment (with due process). Nearly all universities take public money and should stop treating 18 year-olds like children who need to be coddled on publicly subsidized dime.
That being said, most such punishment records should generally be expunged once rehabilitation has been completed. We're all human and make mistakes, and only a pattern of misconduct should be permanently on record.