Sorry to hear about your student's problem. I've been in his position a couple of times before gaining enough flying experience to assert my rights under the COC (or at least make them think I can).

Perhaps, if you make such a generous offer to a student in the future, you can provide them with your cell phone number and instruct them to contact you if they have any travel difficulties. I often do this with family members or friends for whom I've arranged travel, to both provide them some comfort as well as to make sure they get treated properly.

Given the circumstances, I think your student deserves IDB compensation and you should (as a favor) help him get it. Perhaps it could be a good textbook example of how to handle a business problem.

If not too sensitive, what was the originating airport?

Pat