Well, hopefully when the school pkgs his FA, they will add in some 'extra merit" like they did with S2. I think you mentioned S3 has better stats.
I would suggest that S3 retake the SAT and ACT in hopes of better scores (practicing those weak sections)…better scores could mean a few thousand more in merit.
As for your concerns about jobs for college grads, much can depend on major and career goals. And, even if a College Grad has to start at a lower rate, if the job required a degree, then likely there is room to move up. Many companies won’t even promote those w/o degrees. That’s why you often see adults w/o degrees scrambling to finish degrees thru night school/online so that they are eligible for promotions.