OP-
Your son doesn’t want to attend the honors program at Alabama (with merit) because his peers look down at it. I get it- he’s young.
Does he think his peers will look favorably at one of the other schools that may offer him enough merit? They will not. It doesn’t mean there is a problem with these schools. It does mean that they will lack the prestige that they all want. Many of them will be attending “regular” schools because they won’t get accepted to the schools they want (or they cost too much).
He will get over it once he graduates. This part of the process is hard. In the meantime it might help to tell him not to discuss college with anybody. Stay away from the college talk.
Once he goes to college none of this will matter. Since Alabama checks all of his boxes I am sure he will like it… but he might not admit to it until he begins.
As for Rutgers… if he didn’t live in NJ it would be on his list (aside from the weather). It’s a great school.