Funny you should get back and mention Berklee - I was going to suggest it after your next-to-last post. It IS all about musical merit, and he may be able to at least get a partial scholarship. If not, or even if he only goes for a year or two, he'll meet a lot of the "right" people and find a lot of opportunity in Boston (A great town, I moved there to go Berklee and ended up staying none years, but unlike your son was not confident enough, so bailed out even after I got accepted. Was scared about the $, too - and was good, but not scholarship material).
Get him in by hook or by crook, if only for a year. He may be able to doa work/study coop (a young friend who graduated recently from Pratt did this with a partial Scholarship and a couple of loans).
T