I really think we need to banish the word “fail” from most conversations. Every experience is a chance to learn, and we learn more when we “fail” because we have to reflect, adapt, and move on. Those who go through life without ever “failing” are in for a shock when things suddenly go south and they’ve never experienced a challenge.
If your DS wants to stay, then that very well may be the best course of action for him even if he continues to have challenges. I can’t answer as to the financial issues; your family needs to make that determination.
Most schools have some sort of academic probation; you’ll have to check with the school regarding its policies. You might have a good case for getting a withdrawal for the whole term based on your DS’s medical issues. The sleeping through class could be a result of his blood sugar challenges, and he has an ER visit as documentation of the seriousness. If he can get an authorized withdrawal and readmission, he might be able to wipe the slate clean and retake the whole term.
DS '04 "Boogaboo"
DD '08 "Lilybear"