Do not write Berklee off solely because of the low graduation rate. A lot of that is because students get job offers and go to work in the industry before graduating. The running joke is that they give diplomas only to those who have failed at finding work.
Oberlin could be right for him, particularly if he wants to pursue a jazz emphasis. They have an excellent jazz department with a new building for it planned to open by September 2009. They also have a major known as TIMARA -Technology in Music and Related Arts if he is into the electronic aspect of things. There is no instruction that i know of in the rock/pop/blues genres, but there are a lot of student bands that come and go that would give him opportunity to play in just about any style he wants. They do not have a business curriculum, but they do have an Entrepreneurship sequence that may be of interest. See
Creativity & Leadership: Entrepreneurship at Oberlin for details.