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If he were sick with pneumonia and in the hospital would you take him home before the doctors said that it was okay to do so?  It sounds like he is doing well there and making real progress.  Does he seem happy there?  How is he when you go to see him?  If it is helping him I think I would let him stay there if I were in your shoes.  Get him steady and ready to be able to face the demands of going back to school.  At this age it should not be hard for him to catch up on his reading and math, even if they have to offer him some extra help or tutoring.

Good luck.