awww Nikki that is a hard one!!! I haven't been through that, so its hard to understand entirely, but I think that repeating a grade earlier is better, for them...so they don't have to go through it when they are older etc and there are more social things then. He'll be affected by it now, but I hope that the school councellor would have plenty of suggestions on how to help him get through this. or find a family councillor who can help all of you learn what to do now, this way its not coming from you & DH might receive it better...also it will help Corey in the longer term with your support...
Like I said before I haven't been there, but I can imagine it would be really hard.